1. This paper consists of section A, B and C with a total of nine (9) questions.
  2. Answer all the questions in section A and B and two (20 questions from section C.
  3. Section A carries Twenty (20) marks, section B and C carry forty (40) marks each.
  4. Non-programmable calculators may be used.
  5. All communication devices, programmable calculators and any unauthorized materials are not allowed in the examination room.
  6. Write your Exam ination Number on every page of your answer booklet (s)

SECTION A (20 Marks)

Answer all questions in this section

  1. For each of the following items (i) – (xv), choose the correct answer from the given alternatives and write its letter beside the item number in the answer booklet provided.
  1. The profit which expressed as a fraction or percentage of the selling price is known as
  1. Net profit
  2. Margin
  3. Markup
  4. Rate of stock turn over
  5. Non-of the above
  1. A customer buys 100 goods of Tzs 5000 each and has been given a 25% trade discount if he pays within 30 days. What amount would he pays within discounting periods?
  1. Tzs 735000
  2. Tzs 573000
  3. Tzs 125000
  4. Tzs 625000
  5. Tzs 375000
  1. In the books of consignor the balance of the consignment stock account would be shown
  1. As an asset in the balance sheet
  2. As a liability in the balance sheet
  3. On the credit side of trading account
  4. On the debit side of consignment account
  5. Consignors account
  1. Which of the following is a capital expenditure?
  1. Rent
  2. Wages
  3. Salaries
  4. Fire insurance
  5. Motor van
  1. How could a purchase of a non-current asset by cheque affect the balance sheet
  1. By decreasing non-current assets accounts and decrease bank account
  2. By increasing Bank account and decrease Bank Account?
  3. By increasing non current asset account and decreasing cash account
  4. By increasing non-current asset account and decreasing bank account
  1. What is the purpose of the provision for doubtful debts account in the business?
  1. To write off bad debts
  2. To record all possible bad debts
  3. To recover all bad debts
  4. To provide debtor discounts
  5. To record bad allowance
  1. A cheque which is not accepted for payment by the bank due to insufficient fund in the drawers bank account is referred to as
  1. Dishonoured cheque
  2. Outstanding cheque
  3. Bank lodgment
  4. Unrecorded cheque
  5. Stale cheque
  1. Which one of the following would you not take into account in calculating working capital?
  1. Cash
  2. Debtors
  3. Amount at bank
  4. Creditors
  5. Motor vehicles
  1. In the books of consignors the acceptance of bills of exchange by the consignee will be credited to
  1. Consignment account
  2. Consignees account
  3. Bill receivable account
  4. Bill payable account
  5. Trading account
  1. In case of del-credere commission, the liability for bad debts is a burden to?
  1. Consignees
  2. Consignor
  3. Customer
  4. Profit and loss account
  5. Consumer
  1. X and Y are partners in a firm sharing profit and losses in the ratio of 3:1. Z is admitted as a partner who pays Tzs 4000/= as a goodwill. The profit sharing ratio is 2:1:1. Then goodwill is credited to:
  1. Y’s capital 4000/=
  2. X’s capital 4000/=
  3. X’s capital 3000/= and Y’ s capital 1000/=
  4. Profit and loss Appropriation account
  5. Revaluation account
  1. Where will you record interest on drawing
  1. Debit side of profit and loss appropriation account
  2. Credit side of profit and loss appropriation account
  3. Credit side of profit and loss accounts
  4. Credit side of capital/current account only
  5. Partners capital account
  1. In the absence of partner’s agreements, partners are entitled to
  1. Salary
  2. Commission
  3. Interest on loan and advances
  4. Profit share in capital ratio
  5. Share profit equally
  1. The users of accounting data;
  1. Farmer, teacher and banker
  2. Doctors, bankers and government
  3. TRA, School and Hospitals
  4. Trader, bankers and government
  5. Schools, Market and head of Dept
  1. The asset are arranged in order of liquidity which is the descending order in which current asset should be shown in the balance sheet.
  1. Inventory, account receivable, bank, cash
  2. Inventory, account receivable, cash, bank
  3. Account receivable, inventory, bank, cash
  4. Cash, bank, account receivable, inventory
  5. Bank, Inventory, cash, account receivable
  1. Match the explanations of Auditing concept in Column A with the corresponding terms in Column B by writing the letter of the correct response beside the items number in the answer booklet provided.



  1. The person who is competent and independent in Auditing
  2. The Audit that is conducted during the financial year.
  3. The Audit that is conducted by an external Auditor as per legal requirements
  4. The Audit that is conducted at the end of financial period.
  5. The Audit that is performed by an independent Auditor as required by stakeholder.
  1. Private Audit
  2. Management Audit
  3. Auditor
  4. Auditing
  5. Final Audit
  6. Interim Audit
  7. Statutory Audit


Answer all questions in this section

  1. Book keeping involves the recording on a daily basis of a company’s financial transactions whether on single entry system or double entry system and because of book keeping, companies are able to track all financial information on its books to make key operating, investing, and financial information on its books to make key operating, investing, and financing decisions. Outline four reasons stating why single entry system is not important in book keeping.
  2. A trial balance was extracted from books of C. Mtumzima and it was found that the debit side exceeded the credit side by TZS 1,000,000/=. This amount was recorded in the suspense Account. The following errors were later discovered and corrected.
  1. Purchases were over casted llater by TZS 400,000/=
  2. An amount paid by T.Lulanga was debited to the control Account as TZS 870,000/= instead of TZS 780,000/=
  3. Sales were under-added by TZS 510,000/=


  1. Open Journal entries to rectify above errors
  2. Write up the suspense Account as it would appear in C.Mtumzima’s Ledger
  1. Shedrack Traders had the following assets and liabilities on the date shown:


Premises     14,500   14,500

Motor cars      2,800   1,800

Furniture      3,500   3,200

Stock in Trade     11,200   13,100

Trade debtors      10,900   11,400

Trade creditors     14,600   17,200

Cash at bank and in hand    1,330   3,980

Prepaid expenses     670   1,120

Accrued expenses     1,300   600

Additional information 

During 2020 he withdrew TZS 300 per month from the business bank account for his personal use. On 4 July 2020 he sold his personal car for TZS 12,000 and paid the proceeds into the business bank account


Calculate the net profit or loss made by Shedrack Traders in 2020.

  1. On 31st December 2017, the cash book balance of Bonge Traders was TZS 253,700/= where the bank statement showed a credit balance of TZS 256,700/=  In comparing these two balances, the following were discovered;

Cheques not yet presented for payment TZS 123,400/=

Cheques paid into the bank but not yet credited by the bank account TZS 121,600/=

Items shown in the bank statement but not yet entered in the cash book were as follows

  1. Bank charges      TZS 2,400/=
  2. Standing order     TZS 4,600/=
  3. Dividends collected by the bank   TZS 8,200/=


Prepare a bank reconciliation statement starting with balance as per bank statement. (Do not update the cash book)

SECTION C (40 Marks)

Answer two (2) questions from this section

  1. (a)Majani and Master J enter into a Joint venture to share profit losses equally resulting from dealings in second-hand digital TVs, both parties taken an active role in the business, each recording his own transactions. They have no Joint Bank Account.


July 1: Majani busy four TVs for a total of TZS __________ 110,000/=

July 3: Majani pays for repairs TZS _______ 84,000/=

July 4: Master J pays office Rent TZS 30,000/= and advertising TZS 9,000/=

July 6: Master J pays for Packing materials ________ TZS 3,400/=

July 7: Master J buys a TV in excellent condition for __________ TZS 60,000/=

July 31: Majani sells the five (5) TVS to various customers, the sales being competed on this date and totaling TZS 310,000/=


  1. Show the relevant Accounts in the books of co-ventures
  2. Memorandum joint venture account

(b) Given the table below;














  1. Provision for bad debts account
  2. Income statement
  3. Statement of financial position
  1. On 6th June 2020, Bagamerchant in Congo sent a consignment of 500 cases of goofs to Kungu, his agent in Babati Tanzania. The goods had Baga TZS 4000/= per case and paid transport and insurance amounted to TZS 50,000/=

Baga’s Accounting period ended on 31st December 2020, and Kungu sent him an Interim Account sales made up to that date. It was disclosed that 400 cases had been sold for TZS 6000/= per case and import duty TZS 192,000/= and distribution expenses TZS 20,000/= had been paid. Commission at 5% on sales plus 2% Del-credere was charged.

On 10th March 2021, Baga received the final Account sales showing that the remainder of the consignment had been sold for TZS 5000/= per case, distribution charges TZS 32,000/= had been paid and a commission was deducted. A cheque was enclosed for the Balance of Baga.


  1. Prepare necessary accounts in the books of Baga for year 2020 and 2021.
  2. Account sales
  1. Marenga company ltd was formed on 1st January 2015 and the following information is available for its first four years of operation

2015: Bought motor car costing shs 2,000,000 on 1.7.2017

2018: sold motor car which was bought for sh 6,000,000 on 1.1.2015 for the sum of 3,000,000 on 30th September 2018

Marengacompany ltd depreciates its motor car at the rate of 10% per annum, reducing balance method for each month of ownership. The accounting period for the company ltd endes in December each year.


For each of the year 2016, 2017 and 2018, prepare the following accounts/statements 

  1. Motor car account
  2. Provision for depreciation account
  3. Disposal account
  4. Income statement
  5. Statement of financial position








  1. This paper consist of three section A, B and C
  2. Answer all questions in section A and B and only two (2) questions in section C
  3. The use of Scientific Non programmable calculators is allowed in the examination room
  4. Write your Examination Number in every page of your answer sheet (s)



Answer all questions in this section

  1. For each of the items (i) – (xv), choose the correct answer from the given alternatives and write its letter beside the item number in the answer sheet provided.
  1. The cash payment of TZS 4,000 to Biriani will appear as
  1. Debit Cash account, Credit Biriani account
  2. Debit Biriani account, Credit Bank account
  3. Credit Cash account, Debit Bank account
  4. Debit Biriani account, Credit Purchases account
  1. A balance of an account can defined as the
  1. Balance carried down
  2. Difference between two sides of an account
  3. Total amount of debit and credit sides
  4. Balance brought down
  5. Balancing figure of an account
  1. “True and Fair view” state of affairs is a conclusive word in audit report. According to the auditor, it means;
  1. Financial statements are true and accurate
  2. Financial statements are fairly prepared
  3. Financial statements are prepared following the double entry system
  4. Financial statements belong to a True and Fair view of a firm.
  5. Financial statements are accurately prepared
  1. In a partnership which of the following statements is correct?
  1. Current account is used where fluctuating capital account is adopted
  2. Fixed capital account is used where appropriation account is not opened
  3. Fixed capital account is prepared where there is no partnership agreement
  4. Current account is prepared where there is no partnership agreement
  5. When fixed capital account is maintained current account should be opened.
  1. Which of the following will happen if TZS 6,000 will be added to Machinery repair instead of being added to Non-current asset?
  1. Gross profit will not be affected
  2. Gross profit would be affected
  3. Gross profit and net profit would be affected
  4. Net profit would be affected
  5. Net profit would not be affected
  1. What is meant by the term revenue expenditure?
  1. The extra capital paid by the proprietor
  2. Money spent on non-current asset
  3. The cost of running the business on day to day basis.
  4. Money of painting a non-current asset
  5. Cost of buying a machinery
  1. The following are source domestics;
  1. Sales, credit note, cheque
  2. Cheque, invoices, cash
  3. Invoice, receipt, debit note
  4. Credit note, debit note, cash
  5. Bank, invoices, credit note
  1. A firm bought machinery for TZS 50,000 which had a scrap value of TZS 5,000, and useful life of 5 years. What would be the depreciation expenses if straight line method is used?
  1. TZS 9,000
  2. TZS 11,000
  3. TZS 10,000
  4. TZS 5,000
  5. TZS 11,500
  1. Cash float of 2,560/= is desired if 2,000/= is spent if the period now much will be reimbursed at the end of the period?
  1. 560
  2. 4000
  3. 2000
  4. 2560
  5. 4560
  1. Which among the following adjustment is treated as current assets in the preparation of statement of financial position?
  1. Prepaid income
  2. Accrued expense
  3. Accrued revenue
  4. Outstanding expenses
  5. Unearned revenue.
  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 digits method
  3. Unit of output method
  4. Diminishing balance method
  5. Revaluation method
  1. Which of the following are the examples of revenue expenditure?
  1. Purchases of furniture and payment for electricity bill
  2. Repair of van and petrol costs for van
  3. Buying machinery and paying for installation costs
  4. Electricity coasts of using machinery and buying van
  5. Buying a van and petrol costs
  1. If the cost of goods sold is TZS 16,000 and the profit margin is 20%, determine the amount of sales.
  1. TZS 3,200
  2. TZS 20,000
  3. TZS 16,800
  4. TZS 24,000
  5. TZS 12,800
  1. Which of the following best describe a trial balance?
  1. Shows the financial position of a business
  2. It is a special account
  3. Shows all the entries in the same place
  4. It is a list of balances on the same place
  5. It is used to calculate profit
  1. The main purpose of manufacturing statement is to deduce
  1. The cost of production
  2. Cost of raw materials available for use
  3. Prime cost
  4. Factory profit
  5. The cost of sales
  1. Match the answer in LIST B with the response in LIST A and write the letter of the most correct response.



  1. Maximum amount approved by parliament for various service in the appropriation act
  2. An account with the bank of Tanzania into which all government revenue flow
  3. An officer in public service of the united Republic of Tanzania appointed by the minister of finance and charged with the duty of issuing public money to ministries, Regions and departments of United Republic
  4. The year start from 1st July to 30th June next year.
  5. The overall funds of United Republic of Tanzania to which all public revenue and other public money receipts are deposited in order to meet government expenditures
  1. Accounting officer
  2. Accrual basic
  3. Ambit of vote
  4. Cash basic
  5. Child
  6. Controller and auditor general
  7. Consolidated fund
  8. Development Expenditure
  9. Exchequer account
  10. Family
  11. Government Accounting financial year
  12. Imprest system
  13. Paymaster General
  14. Petty cash
  15. Receiver of revenue
  16. Public money



Answer all questions in this section

  1. (a)With example explain six (6) errors which do not revealed by trial balance,

(b) Give out four (4) differences between consignment and joint venture

  1. (a)Outline the reasons causing the differences between bank balance on cashbook and bank statement (five reasons)

(b)Mention any five (05) users of financial statements 

  1. (a)The following table shows information relates to the Soccer City club subscriptions for the year 2015. You are required to prepare subscription account for the year ended 31st December 2015


1st January 2015

31st December 2015

Subscription in arrears 

Tshs 4,000

Tshs 2,100

Subscription in advance

Tshs 1,200

Tshs 8,900


Subscriptions – Received during the year 2015 were Tshs. 48,920/=

(b)You are provided the following information from the books of Kisinda on 30th JUNE 2018. Complete the following table.



























  1. Mtumbadi of Morogoro consigned 2000 cases of Tomatoes to Munyabi of Kibaha at a price of 800/= @case. Mtumbadi incurred the following expenses, packing 4,000/=, freight 30,000/=, export duty 8,000/= and insurance, 7,000/=. Munyabi paid import duty 27,000/=, advertising 9,000/= and carriage on sales 7,000/=. Munyabi has to receive 20% commission plus 10% delcredere commission on sales. Munyabi made the following sales.
  1. 800 cases sold at a price of 600@
  2. 400 cases sold at a price of 1,500@
  3. 400 cases sold at a price of 900 @

The units unsolved were kept by the consignee; the balance was remitted by bank draft 

Required: Prepare

  1. Consignment outward A/C
  2. Consignment to Munyabi A/C



Answer only Two questions in this section

  1. Given the following Trial balance of Madulu ltd as on 31st August 2015






Drawing and capital

Motor van

Purchases and sales

Inventory at start


Carriage inwards

Carriage outwards

Wages and salaries 



Provision for bad debts


Bad debts


Rent received

Provision for depreciation motor van

Debtors and creditors


Petty cash










































Additional information

  1. Inventory at close Tsh 6,000/=
  2. Accruals were wages shs 1,500/= and commission Tsh 1,200/=
  3. Prepayment insurance shs 700/= and Rent receivable Tsh 900/=
  4. Goods taken by the owner for own use Tsh 400/=
  5. Provision for bad debts in 5% on debtor
  6. Depreciate motor van and premises by 10% p.a on cost


Required: From the above transactions found in the books of Maduhu ltd. Prepare 

Income statement for the year ended 31st August 1995 and the statement of financial position as to date


  1. Chama and Bwalya own a retail business in Mwanza. Their retail showroom has three Departments namely X, Y and Z. The following balances were extracted from their books as at the end of their financial year, 31st December, 2020.






Opening Stock: Department




Purchases: Department





Sales: Department  -X




Closing Stock: Departments  -X



















Salaries and wages 



Discount allowed 

Discount Received 

Sundry expenses 

Depreciation on 

Furniture and fittings 










Additional information

  1. Goods having a transfer price of shs 21,400/= and shs 1,200/= were transferred from Departments X and Y respectively to Department Z
  2. The various items shall be apportioned among three Departments in the following proportion



Depart X

Depart Y

Depart Z







Salaries and wages 





Discount received










All other expenses

On the basis of sales 



  1. Departmental income statement for the year ended 31st December 2020
  2. Determine the business’ operational result
  3. Comment on the performance of departmental
  1. The Trial balance of Awilo a sole trader, taken out on 30th September 2002, Fail to agree. To detect errors, he decided to prepare sales and purchases control accounts from the following information


Sales ledge debit balances 1.10.2001.    227,200

Sales ledger credit balances 1.10.2001   420

Purchases ledger debit balances 1.10.2001   1,270

Balances for the year to 30th September 2002  

Credit sales        402,120

Cash sale        153,700

Cash purchases       85,600

Credit purchases      160,560

Sales returns        2,120

Purchases returns       4,500

Cash payment to creditors      222,700

Bad debts written off      4,700

Cash received from debtors      411,000

Dishonoured cheque in favour of customers    9,000

Provision for bad debts      4,790

Carriage charged to customers     3,600

Discount allowed       20,110

Legal fees charged to customers     450

Debit balances in sales ledger transferred to purchases ledger 2,000

The lists of balances extracted from the personal ledger were as follows; 


Debtors: Debit balance     206,160

  Credit balances     540

Creditor: Credit balances     83,115

  Debit balances     825


  1. Prepare control accounts
  2. State the amount of errors occurred in each account.









  1. This paper consists of sections A, B and C with a total of nine (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 and section B and C carry forty (40) marks each
  4. Non programmable calculators may be used.
  5. Cellular phones and any unauthorised materials are not allowed in the examination room.
  6. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks)

Answer all questions in this section.

  1. Which categories of errors represent errors which do not affect the Trial Balance agreement?
  1. Errors caused by inaccurate arithmetic operations.
  2. Errors which cancel out each other in the trial balance.
  3. Errors caused by omission of a balance of account.
  4. Errors caused by entering an item once in an account.
  5. Errors caused by posting an item on a wrong side of an account.
  1. Costs incurred for machine repairs in accounting for departmental businesses is appropriately apportioned according to
  1. the value of machinery in each department.
  2. the value of non-current assets in each department.
  3. the number of machines in each department.
  4. the number of machine hours used in each department.
  5. the floor area occupied by each machine.
  1.         How is the capital for a non-profit making organization described?
  1. Capital employed fund 
  2. Capital supplied fund
  3. Accumulated fund 
  4. Gross working capital fund
  5. Accumulated shares fund
  1.         How would you record the commission due to consignee in the books of the consignee?
  1. Dr. Consignee's account and Cr. Consignment account
  2. Dr. Consignment account and Cr. Profit and loss account
  3. Dr. Profit and loss account and Cr. Consignment account
  4. Dr. Consignor's account and Cr. Commission Receivable account
  5. Dr. Goods on consignment account and Cr consignment account
  1. Amani business had an opuning balance of TZS 12,.500 fnr creditors at the beginning of the year and the closing creditors balances of TZS 21,000 at the year end. During the year, the payment made to creditors amounted to TZS 16,000. Calculate the amount of purchases during the year.
  1. TZS 33,500
  2. TZS 27,000
  3. TZS 16,500
  4. Tzs 24,500
  5. TZS 7,500
  1.         During the month of January, a petty cashier was provided with an opening cash float of TZS. 70,000. However, at the end of the same month the closing cash float balance was 15,900. How much should be reimbursed to the cashier at the,end of the month?
  1. TZS 15,900 
  2. TZS 70,000
  3. TZS 54,100 
  4. TZS 140,000
  5. TZS 101,820
  1.       A debit balance of TZS 5 ,000 in a cash account shows that
  1. cash has been overspent by TZS 5,000.
  2. TZS 5000 was the total of cash paid out.
  3. the total of cash received was less than TZS 5,000.
  4. there was TZS 5,000 cash in hand.
  5. TZS 5,000 was the total of cash received.
  1.    The act of recording transactions in any subsidiary book is called
  1. posting.
  2. double entry system.
  3. transaction.
  4. balancing.
  5. journalizing.
  1.         The primary objective of trial balance is
  1. to make sure that total amount of debit side and credit side are equal.
  2. to detect and avoid errors and frauds.
  3. to prepare trading, profit and loss account and balance sheet.
  4. to test the arithmetic accuracy of the ledger.
  5. to prepare suspense account.
  1. What would you consider to be the main source of government revenues?
  1. Royalties
  2. Penalties
  3. Taxes
  4. Interest
  5. Fees
  1.         Which of the following would best describe the use of a control account?
  1. To check the arithmetical accuracy of ledgers
  2. To show costs ascertained in the ledgers
  3. To show allowance given by suppliers
  4. To check the debit balance of sales account
  5. To show the direct costs allocated to a section of a business
  1.       How would you categorize the subscription paid in advance in the balance sheet of a non-profit making organization?
  1. A current liability
  2. A non-current liability
  3. A current asset
  4. A non-current liability
  5. Accumulated fund
  1.    The term depreciation would best be described as the
  1.  value of money used to replace non-current assets.
  2.  value of non-current assets consumed due to its use.
  3.  gradual increase in value of non-current assets due to its use.
  4.  value of a non-current asset that remains after its use.
  5.  amount incurred to repair the non-current assets
  1.    Which of the following depreciation methods uses the reduced value to compute the depreciation of a non-current asset?
  1.  Straight line method          
  2. Sum of the years digits method
  3. Diminishing balance method                 
  4. Machine hours rate method
  5. Unit of output method
  1.       Prime cost is obtained as a result of
  1.  Cost of raw materials used plus direct wages and factory overhead cost.
  2.  Cost of raw materials used plus direct wages.
  3.  Factory overhead cost plus direct wages.
  4.  Factory cost of goods manufactured less cost of raw materials used. 
  5. Cost of raw materials used less factory cost of goods manufactured.

2.For each of the items (i) - (v), match the descriptions of the different types of capital 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 booklet provided.



  1. Excess of current assets over liabilities of a business
  2. Non-current asset plus current
  3.         Total assets of business less current liabilities
  4.         Total current assets
  5. The amount of money invested in business by the owner
  1. Asset capital
  2. Gross working capital
  3. Current capital
  4. Gross capital employed
  5. Net working capital
  6. Net capital employed


SECTION B (40 Marks)

Answer all questions in this section.

3. Briefly explain the following accounting concepts:

  1.  Business entity
  2. Money measurement
  3.  Accruals
  4.  Going concern
  5. Dual aspect

4. A partnership may be formed through an oral or a written legal agreement among the partners. Suppose there is no written partnership agreement, explain briefly five provisions of the Partnership Act that would govern the operations of the partnership.

5.(a)The following information was extracted from the books of Rhombo Traders for the year ending 31st December, 2017



Stock (1st Jan. 2017)


Stock (31st Dec. 2017)    






Rent received


Warehouse wages


Carriage inwards


 Using the information provided, calculate:

(i)   The value of goods available for sale.

(ii)  The gross profit for the year.

(iii) The net profit for the year.

(iv) Rate of stock turnover.

(v)  Percentage of expenses over sales


6. On 1st January 2015 Mikuyu Motors Company Ltd purchased Motor Lorry worth TZS 12,000,000. The company used the asset for three years. On 31st December 2017 the lorry was sold for TZS 3,000,000. It is the policy of the company to compute depreciation using straight line method.

Using the information provided, prepare the Motor Lorry and Provision for Depreciation on Motor Lorry Account for the three years ending 31st December 2015, 2016 and 2017.


SECTION C (40 Marks) 
Answer two (2) questions from this section.

7. The following is the receipts and payment account of Chamwino social club for the year ending 31st December 2017:







Balance b/d 




Subscription: Year 2016


Printing and postage


Year 2017 


General expenses


Year 2018


Drama expenses






Proceeds of drama


Municipal taxes


Sale of waste papers






Electricity bills






Additional Information

  1. There are 500 members, each paying annual subscription fee of TZS 450.
  2. TZS 9,000 is still in arrears for the year ended 2016 and it was decided to be written off.
  3. Buildings stand in the books at TZS 500,000 and are to be depreciated at 5%.
  4. General expenses of TZS 2,100 for the year have not been paid.

Use the information provided to prepare the following:

  1. Statement of Affairs at 1stJanuary 2017.
  2. Subscriptions Account for the year ending 31stbecember 2017.
  3. Statement of Income and Expenditure for the year ending 31 StDecember 2017.
  4. Statement of Financial Position for the year ended 31stbecember 2017.


8. MS Annet did not maintain her accounting records on a double entry system. On 31 st December 2018 she supplied the following list of assets and liabilities.


31st December 2017

31stDecember 2018







Motor van



Trade debtors



Trade creditors



Loan from bank



Salaries due



Prepaid insurance

25 ,ooo


Rent received in advance

40 ,000



The following information is also available:

(i)During the year to 31 st December 2018, MS Annett made loan repayment of TZS 100,000.

(ii)MS Annett provides for depreciation on motor vans at 10% per annum.

Prepare the statements of affairs to calculate the opening capital as at 1 st January 2018 and closing capital as at 31 st December 2018.

9.   The following is a trial balance of Mr Mashamba for the year ended 31st December 2018:

Mr Mashambas Trial Balance as at 31 December 2018






Inventory of raw materials 1/1/2018

Inventory of finished goods 1/1/2018 Inventory of work in progress 1/1/2018 wages (Direct 3,600,000  factory indirect TZS 2,900,000)


Carriage inwards on raw materials

Purchase of raw materials

Machinery and Plant (cost 5,600,000) Office Fixtures (Cost TZS 400,000)

Other factory expenses

Lighting and heating

Factory power and fuel


Sales expenses

Commission on sales



General administration expenses

Office Rates

Discount allowed Carriage outwards




Account receivable & Account payable Cash at Bank

Cash in hand



Capital as at 1/1/2018





















1 18,000













Notes at 31/12/2018:

 (i)Inventory of raw materials TZS 480,000, inventory of finished goods TZS 800,000 and inventory of work in progress TZS 300,000.

(ii) Lighting, rent and insurance are to be appoftioned as follows: Factory 5/6, administration 1/6.

(iii) Depreciation on machinery and plant and office fixtures is 10% per annum on cost.

 (iv) Net Profit was TZS. 1,796,000.

Use the given information to prepare the Statement of Manufacturing Cost for the year ending 31 st December 2018 and the Statement of Financial Position as at 31st December 2018.








033/1                                                   BOOK-KEEPING

Time: 3 Hours AUG, 2021


  1. This paper consists of three sections A, B and C with a total of 9 questions.
  2. Answer all questions in section A and B and only two (2) questions from section C.
  3. Section A carries twenty (20) marks, section B forty (40) marks and section C forty (40) marks.
  4. Non programmable calculators may be used.
  5. Cellular phones,  and other authorized materials are not allowed in the examination room.
  6. Write your examination number on every page of your Answer booklet(s).


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 

  1.  If sales is 20,000 and profit make up is 25%, determine the amount of cost price

                 A:  13,600          B: 12,000          C:  16,000             D: 12,900      E: 20,600

  1.    Which book of prime entry records the sale or purchase of non-current Assets?

                 A:   General journal           B:    Sales journal           C:    Purchases journal          D:    Cash book                            E:    Sales return day book

  1.                    If cash sale amount to Tshs 100,000/= paid direct into the bank account, the correct double   entry will be to

                A:    Debit sales account and credit cash account by sh.100, 000

                B:    Debit cash account and credit bank account by sh.100, 000

                C:    Debit bank account and credit sales account by sh.100, 000 

                D:    Debit bank account and credit cash account by sh.100, 000

                E:    Debit sales account and credit bank account by sh.100, 000

  1.  How much is to be reimbursed if a petty cashier has spent Tsh.189,00/=while his cash float is Tsh.200,000/=

                 A:  Tsh,11,000/=      B:Tsh 389,000/=      C:    Tsh,189,000/=                       D:Tsh,200,000/=                            E:Tsh,21,000/=

  1.    Working capital is a term meaning.      
  1.     The excess of current liabilities over current liabilities
  2.     The excess of the current assets over the current liabilities
  3.     the excess of the current assets over non-current liabilities
  4.     The excess of current assets over non-current assets.
  5.      The excess of non-current Assets over current liabilities
  1.  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.
  1.  TZS  840         B. TZS  560         C. TZS  464       D. TZS  696      E. TZS  506
  1. From the following categories of errors, identify the category of errors which affect    only one account

A.  Casting errors.           B.  Errors of principle.        C.  Errors of omission.        D.  Errors of original entry.            E.  Errors of commission.

  1. In the business of C. Sangster, who owns a clothing store, which of the   following is the capital expenditure?
  1. Fixtures and New Van bought                   B. Shop fixtures bought and wages of assistants                         C. Wages of assistants and new van bought      D. Wages of assistants and Petrol for Van               E. Fixtures and salaries. 
  1.  Manufacturing account is used to calculate:
  1.     Production cost paid in the year            B. Total cost of goods produced   C. Production cost of goods completed         D. Gross profit on goods sold      E. Prime cost of goods manufactured
  1.    Depreciation can be described as the : _______
  1.     Amount spent to buy a non –current asset
  2.     Salvage value of a non-current asset consumed during its period
  3.     Cost of the non-current asset consumed during its period
  4.     Amount of money spent replacing non-current asset
  5.      Cost of old asset plus new assets purchased
  1.  A bank reconciliation statement is a statement:
  1.     Sent by bank when the account are overdrawn
  2.     Drawn to verify cash book balance with the bank statement balance
  3.     Drawn up by the bank to verify the cash book                                   
  4.     Sent by the bank to the customers when errors are made
  5.      Sent by the bank customers to the friends.
  1. If two totals of trial balance do not agree, the difference must be entered in:

                             A real account            B. The trading accounts         C. A nominal account                                            D. The capital account           E. A suspense account

  1.     The accounting equation is expressed in the financial statement called:

A.   statement of financial position                         B. income statement           C. expenditure statement                                D. reconciliation statement         E. statement of change in equity

  1.    If we take goods for own use, we should    
  1.  Debit drawings Account: Credit Purchase Account
  2.  Debit Purchases Account: Credit Drawings Account
  3.  Debit Drawings Account: Credit Inventory Account
  4.  Debit Sales Account: Credit Inventory account
  5.   debit inventory Account: Credit Drawing Account
  1.  if a partnership maintains a fixed capital account, then the partner’s share

       of profits is:

  1.     Credited to the partner’s drawings account         B.  debited to the  partner’s   capital account                 C. credited to the partner’s capital account                                      D. credited to the partner’s current account        E. debited to the partner’s current account
  1.          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



  1. 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.
  2. These are payments received by a firm or person by cheque but they are not yet passed through the banking system.
  3. These are fees deducted by the bank for different services made on the current account.
  4. These are payments made by the customer firm direct to the bank account of supplier firm.
  5. These are payments directed by the account holder to be made by the bank on his behalf.
  1. Standing order
  2. Dishonored cheques
  3. Unpresentedcheques
  4. Errors
  5. Unaccredited cheques
  6. Dividents
  7. Direct transfers
  8. Bank charges


Answer all questions in this section.

  1.           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/=
  1.    What is the term used to mean the difference between cost value and book value.
  2.    Outline four reasons that could be the causes for him to dispose the car for less than the cost value.
  1.          The DSM Rotary club, has provided you with the following information:-

As at 31st December



Subscription in arrears



Subscription in advance



Subscription during the year



Insurance expenses owing (in arrears)



Insurance expenses prepaid (in advance)



Insurance paid during the year



Required:  Prepare A Subscription account and Insurance account, clearly showing           amounts to be transferred to income and expenditure accounts for year 2001.

  1.          Define the following terms
  1. Discount received 
  2. Invoice
  3. Discount allowed
  4. Carriage inwards
  5. Carriage outwards
  1.          (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.


Answer two questions only from this section.

  1.          Panguso& company limited own a manufacturing industry which had the following records for the year ended at 31st December 2007.

Inventory at 1st January 2007: raw materials       sh.760, 000

 Finished goods       sh 360,000

Purchases of raw material                           sh.420, 000

Sales of finished goods             sh.2, 490,000

Factory Fuel & power                                sh.320, 000

Royalty                 sh.500, 000

Depreciation of works machine               sh.88, 000

Market value                         sh.1, 800,670

General office expense                sh.10, 740

Manufacturing wages               sh.170, 000

Inventory at 31 stDec 2007: raw material            sh.900, 000

 Finished goods                sh.580, 000

 Works in progress           sh.734, 000

        You are required to prepare

  1. Statement of manufacturing costs for the year ended at 31 stDec 2007
  2. Income statement for the year ended at 31.12.2007
  1.          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.


January 1    Bought machine ‘A’   10,000

July 1     Bought machine ‘B’   6,000


March 31     Bought machine ‘B’   8,000


October 7     Sold machine ‘A’ – proceeds  5,500

November 5     Bought machine ‘D’   12,000


February 4     Sold machine ‘B’ – proceeds  3,000

February 6     Bought machine ‘B’   9,000

October 11   Exchanged machine ‘D’

for machine valued at   7,000


  1.  The machinery accountfor the period 1st January 2015 to 31st December 2018
  1.  The accumulated provision for depreciation on machinery account, for the period 1st January 2015 to 31st December 2018.
  1.          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  – Cash        344,890

– Credit        268,187

Purchase  – Cash        14,440

  – Credit        496,600

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


Draw up the relevant total accounts entering end of year total for account receivable and account payable.





Time 3:00 Hours MAY 2020 


  1. This paper consists of sections A, B and C with a total of seven (7)questions.
  1. Answer allquestions.
  1. Calculators, cellular phones and any unauthorised materials are notallowed in the examination room.
  1. 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.

Column A

Column B

(i) The profits of the company expressed as a percentage of the owners investment.

(ii)The gross and net earnings expressed as a percentage of sales.

(iii) Current assets compared to current liabilities.

(iv) Very liquid assets compared to immediate liabilities.

(v) The number of days of sales held in stock.

(vi)The number of days of purchases represented by creditors.

(vii) The number of days of sales represented by debtors.

(viii) The ratio of fixed interest capital to equity capital.

(ix)  Compares the amount of profit earned per ordinary share with the amount of surplus paid.

(x) The ratio of prior charge capital to ordinary share capital and reserve

  1. Working capital ratio
  2. Acid test ratio
  3. Inventory ratio
  4. Earnings per share ratio
  5. Parables ratio
  6. Dividend cover ratio
  7. Inventory turnover ratio
  8. Gross profit ratio
  9. Equity ratio
  10. Receivables ratio
  11. Gearing ratio
  12. Return on capital employed ratio
  13. Profit margin ratio
  14. Debt ratio
  15. Capital gearing ratio

  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:




(i) Bought stock on credit from Omondi.



(ii) Sold goods on credit to Muita



(iii) Bought a motor vehicle in cash.



(iv) Paid for electricity by cheque.



(v) Returned goods to a supplier, Nkatha.




(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.


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.





024                                         BOOK- KEEPING FORM FOUR


Duration: 2:30 Hours



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

2. Attempt ALL questions

3. Answers for section A and B should be written in the space provided in the question paper 

    and for section C should be written in the answer sheet provided.


1. For each of the following items write the letter of the correct answer in the table provided

  1. Given opening account receivable of 11,500, sales 48,000 and receipts from debtors 45,000, the closing account receivable total should be
    a) 8,500 b) 14,500 c) 83500 d) 18,500

  2. If cost price is 90 and selling price is 120 then
    i) Mark-up 25 percent ii) Margin is 331/2 percent
    iii) Margin is 25 percent iv) Mark –up is 331/2 percent
    a) (i) and (ii) b) (i) and (iii) c) (iii) and (iv) d) (iii) and (iv)

  3. Receipts and payments account is one
    a) Which is accompanied by a balance sheet
    b) In which the profit is calculated
    c) In which the opening and closing cash balances were shown
    d) In which the surplus of income over expenditure is calculated

  4. If it is required to maintain fixed capitals the partners’ shares of profit  must be
    a) Debited to capital accounts b) Credited to capital accounts
    c) Debited to partners current account d) Credited to partners current account

  5. Yu are to buy an existing business which has assets valued at building 50,000, motor vehicle 15,000 fixture 5000 and inventory 40,000. You are to pay 140,000 for the business this means that
    a) You are paying 40,000 for goodwill
    b) Buildings are casting you 30,000 more then their value
    c) You are paying 30,000 for goodwill
    d) You have made an arithmetical mistake
  6. If accounts payable at 1st January 2005 were 2500, accounts payable at 31st December 2003 were 4200 and payment to creditors 32,000, then purchases for 2003 are.
    a) 30,300 b) 33,700 c) 31,600 d) 38,700

  7. An allowance for doubtful debts is created
    a) When debtors became bankrupt b) When debtors cease to be in business
    c) To provide for possible bade debts d) To write –off bad debts

  8. If an accumulated provision for depreciation account is in use then the entries for the year’s depreciation would be
    a) Credit provision for depreciation account, debit profit and loss account
    b) Debit assets account, credit profit and loss account
    c) Credit assets account, debit provision for depreciation account
    d) Credit profit and loss account, debit provision for depreciation account

  9. A firm bought a machine for 3200 it is to be depreciated at a rate of 25% using the reducing balance method. What would be the remaining book value after two years?
    a) 1600 b) 2400 c) 1800 d) some other figure

  10. We originally sold 25 items at 12 each, less 331/2 percent trade discount. Our customer now returns 4 of them to us. What is the amount of credit note to be issued?
    a) 48 b) 36 c) 30 d) 32























2. Choose the correct term from GROUP A which match with the explanation in GROUP B and
      write its letter against the of the relevant explanation 



a) Cost concepts

b) Money measurement concept

c) Going concern concept

d) Business entity concept

e) Realization concept

f) Prudence concepts

g) Consistency concepts

h) Accrual concept

i) Dual aspect concept

i) The concepts implies that the business will continuous to operate for foreseable future

ii) Assets are normally shown at cost price and this is the basic of evaluation

iii) When the firm has due method of treatment of an item it will use the same method in coming years.

iv) Means normally an account should under state the figure rather than overstate the profit

v) This states that there are two aspect of accounting, one represented by assets of the business and assets of the business and other by the claim against them

vi) The net profit is the results of the difference between revenue and expenses 

vii) The concept implies that the affairs of a business are to be treated as being quite separated from non-business activities of  its owner

viii) This concept holds to the view that profit can be taken only into account when goods/services are provided for the buyer

ix) Accounting is concerned only with those facts. People will agree to the money value transactions.






















3.a) Write short notice on the following term

  1. Deferred revenue             (01 mark)
  2. Conversion costs             (01 mark)
  3. General journal               (01 mark)
  4. Accounting                     (01 mark)
  5. Bed debts                        (01 mark)

     b) Differentiate between fixed installment method and written down value method. (05 marks) 

     c) Show accounting entries in the books of consignor

  1. On dispatch of goods              (01 mark)
  2. On payment of expenses on dispatch          (01 mark)
  3. On receiving advance           (01 mark)
  4. On the consignee reporting sales as per A/S       (01 mark)
  5. For expenses incurred by the consignee as per A/S    (01 mark)
  6. For commission payable to the consignee       (01 mark)
  7. When advance is given         (01 mark)
  8. In case of profit         (01 mark)
  9. In case of loss      (01 mark)
  10. When consignment is partly sold          (01 mark)



4. Peter and Paul are in partnership sharing profit and loss according to the partnership act their
balance sheet shows the following at 31st December 1990

Capital: Peter      10,000

             Paul        10,000            20,000

Current account: Paul                  2,000

Long term liabilities 

5% Loan                                    30,000

Current liabilities 

Creditor                                       5,000

Bank over draft                           1,000


Building                            19,000

Furniture                           10,000

Current assets

Stock                                 20,000

Debtors                                5,000

Cash in hand                        3,000

Current a/c (Peter)               1,000




            On the same date they agreed to admit Pendo on the following conditions

  1. Pendo to contribute a capital of shs 10,000 for cash
  2. Pendo to pay shs 1000 in cash as premium 
  3. The premium is raised in the books and with drawn by old partners.
  4. Pendo to pay in cash shs 500/= to credit his current account
  5. Pendo come with creditor shs 3000/= and stock shs 5000/=
  6. The money collected were paid into a firm’s bank account.



  1. Open relevant ledger account for the admission of Pendo
  2. Balance sheet after admission of Pendo                    (15 marks)


5. The following information relating to power Mabula Ltd for the period ended 31/12/2007

  1. Tsh 60,000/= were debited against the bank account under the directions of chief accountant in respect of clearing an overdue liabilities
  2. The bank statement showed a debit of Tsh 43,500/= being charges against the account holder power Mabula
  3. Tsh 16,000/= were paid but recorded as a receipt in the cash book. The cheque for this had been encashed in the bank
  4. Issued cheque but not presented to the bank for payment was Tshs 177,000/=
  5. Tshs 39,000/= had been credited to the account but it related to another bank account holder
  6. A payment of Tshs 66,900 had been recorded as Tsh 69,600 in the cash book.
  7. Tshs 48,000/= had been deposited directly to the bank where the account was credited
  8. Cheque totaling Tshs 70,000/= were received by the bank account holder and entered in his cash book as having deposited but were returned by the bank while marked “refer to drawer”
  9. Tshs 50,000/= were debited in error by the bank account holders another bank account and hence credited to this account 
  10. Tsh 75,000/= in cheque had been deposited at the bank and shown as such in the cash book but had not been realized by the bank at the close of the months.
  11. The cash book balance was Tshs 228,310/= while the bank statement balance was Tshs 227,510/= both balances were favourable 

Prepare bank reconciliation statement start with balance as per cash book (15 marks)

6. The following balances were extracted from Bagamoyo research station’s books of account as
at 30th November 1007

            Cash at bank                            1,254,000

            Account receivable                       24,000

            Research fees receivable              80,000

            Research suppliers                      102,000

            Prepaid insurance                           5,500

            Leasehold                                   400,000

            Building                                   1,200,000

            Insurance expenses                            500

    Accumulated depreciation
 Building                   10,000

            Research equipment  24,000            34,000

            Research equipment                1,440,000

            Salaries payable                                        12,000

            Interest payable                                          6,280

            Service to be rendered                         1,100,000

            Notes payable                          1,300,000

            Capital                                                 2,000,000

            Research supplier expenses          18,000

            Depreciation expenses:

            Research equipment 24,000
            building                     10,000            34,000

            Interest expenses                            6,280

            Salaries expenses                        132,000

            Revenue from services                           244,000


  1. Prepare a trial balance as at 30th November 1997 and 
  2. Profit and loss account for the year ending 30th November 1997           (15 marks)


7. Kibaha social club had the following assets and liabilities on the date shown

            Club premises                                      100,000                       ?

            Subscription received in advance                1,700                   2,400

            Subscription due                                      4,100                       7,300

            Rate due                                                  1,200                       1,600

            Prepaid insurance                                    1,300                       2,200

            Office furniture                                                   7,500                      11,600

            Accrued wages                                                       700                       1,000

            Sports equipment                                     6,400                          ?

   Its Treasurer prepared the following summary of its cash transactions


                                   RECEIPTS AND PAYMENT ACCOUNT


Subscription                                          36,200

Donations                                           18,500

Sales of sports equipment                     2000

Wages & salaries           13,700

New furniture                  6,000

New sports equipment   15,000

Rates                                3,700

Insurance                          5,500

Transport                          6,600

General expenses             4,800

Entertainment                   3,900

Balance c/d                       1,800


  The following additional information is also available 

  1. The sports equipment sold during the year had a book value of shs 3500/=. Depreciation on sports equipment is provided at 20%
  2. The premises that had cost 120,000 some years ago are held on a 60 year lease


a) Balance sheet as at 1.1.1991
b) Subscription account for 1991
c) Income and expenditure
d) Balance sheet as at 31st December 1991              (15 marks)




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