THE PRESIDENT’S OFFICE
MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
COMPETENCE BASED SECONDARY EXAMINATION SERIES
BOOK KEEPING ANNUAL EXAMINATIONS
FORM FOUR-2022
INSTRUCTIONS
- This paper consists of section A, B and C with a total of nine (9) questions.
- Answer all the questions in section A and B and two (20 questions from section C.
- Section A carries Twenty (20) marks, section B and C carry forty (40) marks each.
- Non-programmable calculators may be used.
- All communication devices, programmable calculators and any unauthorized materials are not allowed in the examination room.
- Write your Exam ination Number on every page of your answer booklet (s)
SECTION A (20 Marks)
Answer all questions in this section
- 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.
- The profit which expressed as a fraction or percentage of the selling price is known as
- Net profit
- Margin
- Markup
- Rate of stock turn over
- Non-of the above
- 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?
- Tzs 735000
- Tzs 573000
- Tzs 125000
- Tzs 625000
- Tzs 375000
- In the books of consignor the balance of the consignment stock account would be shown
- As an asset in the balance sheet
- As a liability in the balance sheet
- On the credit side of trading account
- On the debit side of consignment account
- Consignors account
- Which of the following is a capital expenditure?
- Rent
- Wages
- Salaries
- Fire insurance
- Motor van
- How could a purchase of a non-current asset by cheque affect the balance sheet
- By decreasing non-current assets accounts and decrease bank account
- By increasing Bank account and decrease Bank Account?
- By increasing non current asset account and decreasing cash account
- By increasing non-current asset account and decreasing bank account
- What is the purpose of the provision for doubtful debts account in the business?
- To write off bad debts
- To record all possible bad debts
- To recover all bad debts
- To provide debtor discounts
- To record bad allowance
- A cheque which is not accepted for payment by the bank due to insufficient fund in the drawers bank account is referred to as
- Dishonoured cheque
- Outstanding cheque
- Bank lodgment
- Unrecorded cheque
- Stale cheque
- Which one of the following would you not take into account in calculating working capital?
- Cash
- Debtors
- Amount at bank
- Creditors
- Motor vehicles
- In the books of consignors the acceptance of bills of exchange by the consignee will be credited to
- Consignment account
- Consignees account
- Bill receivable account
- Bill payable account
- Trading account
- In case of del-credere commission, the liability for bad debts is a burden to?
- Consignees
- Consignor
- Customer
- Profit and loss account
- Consumer
- 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:
- Y’s capital 4000/=
- X’s capital 4000/=
- X’s capital 3000/= and Y’ s capital 1000/=
- Profit and loss Appropriation account
- Revaluation account
- Where will you record interest on drawing
- Debit side of profit and loss appropriation account
- Credit side of profit and loss appropriation account
- Credit side of profit and loss accounts
- Credit side of capital/current account only
- Partners capital account
- In the absence of partner’s agreements, partners are entitled to
- Salary
- Commission
- Interest on loan and advances
- Profit share in capital ratio
- Share profit equally
- The users of accounting data;
- Farmer, teacher and banker
- Doctors, bankers and government
- TRA, School and Hospitals
- Trader, bankers and government
- Schools, Market and head of Dept
- The asset are arranged in order of liquidity which is the descending order in which current asset should be shown in the balance sheet.
- Inventory, account receivable, bank, cash
- Inventory, account receivable, cash, bank
- Account receivable, inventory, bank, cash
- Cash, bank, account receivable, inventory
- Bank, Inventory, cash, account receivable
- 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.
COLUMN A | COLUMN B |
- The person who is competent and independent in Auditing
- The Audit that is conducted during the financial year.
- The Audit that is conducted by an external Auditor as per legal requirements
- The Audit that is conducted at the end of financial period.
- The Audit that is performed by an independent Auditor as required by stakeholder.
| - Private Audit
- Management Audit
- Auditor
- Auditing
- Final Audit
- Interim Audit
- Statutory Audit
|
SECTION B (40 MARKS)
Answer all questions in this section
- 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.
- 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.
- Purchases were over casted llater by TZS 400,000/=
- An amount paid by T.Lulanga was debited to the control Account as TZS 870,000/= instead of TZS 780,000/=
- Sales were under-added by TZS 510,000/=
Required:
- Open Journal entries to rectify above errors
- Write up the suspense Account as it would appear in C.Mtumzima’s Ledger
- Shedrack Traders had the following assets and liabilities on the date shown:
01.01.202031.12.2020
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
Required:
Calculate the net profit or loss made by Shedrack Traders in 2020.
- 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
- Bank charges TZS 2,400/=
- Standing order TZS 4,600/=
- Dividends collected by the bank TZS 8,200/=
Required:
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
- (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.
2021
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/=
Required:
- Show the relevant Accounts in the books of co-ventures
- Memorandum joint venture account
(b) Given the table below;
DATE | ACCOUNTS RECEIVABLE | PROVISION FOR BAD DEBITS 2% ON DEBTORS |
2018 | 500,000 | 2 |
2019 | 400,000 | 2 |
2020 | 600,000 | 2 |
Prepare
- Provision for bad debts account
- Income statement
- Statement of financial position
- 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.
Required:
- Prepare necessary accounts in the books of Baga for year 2020 and 2021.
- Account sales
- 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.
Required
For each of the year 2016, 2017 and 2018, prepare the following accounts/statements
- Motor car account
- Provision for depreciation account
- Disposal account
- Income statement
- Statement of financial position
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING EXAM SERIES 134
THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
COMPETENCY BASED SECONDARY EXAMINATION SERIES
BOOK KEEPING
FORM FOUR- SEPT 2022
INSTRUCTIONS
- This paper consist of three section A, B and C
- Answer all questions in section A and B and only two (2) questions in section C
- The use of Scientific Non programmable calculators is allowed in the examination room
- Write your Examination Number in every page of your answer sheet (s)
SECTION A (20 MARKS)
Answer all questions in this section
- 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.
- The cash payment of TZS 4,000 to Biriani will appear as
- Debit Cash account, Credit Biriani account
- Debit Biriani account, Credit Bank account
- Credit Cash account, Debit Bank account
- Debit Biriani account, Credit Purchases account
- A balance of an account can defined as the
- Balance carried down
- Difference between two sides of an account
- Total amount of debit and credit sides
- Balance brought down
- Balancing figure of an account
- “True and Fair view” state of affairs is a conclusive word in audit report. According to the auditor, it means;
- Financial statements are true and accurate
- Financial statements are fairly prepared
- Financial statements are prepared following the double entry system
- Financial statements belong to a True and Fair view of a firm.
- Financial statements are accurately prepared
- In a partnership which of the following statements is correct?
- Current account is used where fluctuating capital account is adopted
- Fixed capital account is used where appropriation account is not opened
- Fixed capital account is prepared where there is no partnership agreement
- Current account is prepared where there is no partnership agreement
- When fixed capital account is maintained current account should be opened.
- Which of the following will happen if TZS 6,000 will be added to Machinery repair instead of being added to Non-current asset?
- Gross profit will not be affected
- Gross profit would be affected
- Gross profit and net profit would be affected
- Net profit would be affected
- Net profit would not be affected
- What is meant by the term revenue expenditure?
- The extra capital paid by the proprietor
- Money spent on non-current asset
- The cost of running the business on day to day basis.
- Money of painting a non-current asset
- Cost of buying a machinery
- The following are source domestics;
- Sales, credit note, cheque
- Cheque, invoices, cash
- Invoice, receipt, debit note
- Credit note, debit note, cash
- Bank, invoices, credit note
- 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?
- TZS 9,000
- TZS 11,000
- TZS 10,000
- TZS 5,000
- TZS 11,500
- 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?
- 560
- 4000
- 2000
- 2560
- 4560
- Which among the following adjustment is treated as current assets in the preparation of statement of financial position?
- Prepaid income
- Accrued expense
- Accrued revenue
- Outstanding expenses
- Unearned revenue.
- Which of the following depreciation methods uses the reduced value to compute the depreciation of non-current assets?
- Straight line method
- Sum of the years digits method
- Unit of output method
- Diminishing balance method
- Revaluation method
- Which of the following are the examples of revenue expenditure?
- Purchases of furniture and payment for electricity bill
- Repair of van and petrol costs for van
- Buying machinery and paying for installation costs
- Electricity coasts of using machinery and buying van
- Buying a van and petrol costs
- If the cost of goods sold is TZS 16,000 and the profit margin is 20%, determine the amount of sales.
- TZS 3,200
- TZS 20,000
- TZS 16,800
- TZS 24,000
- TZS 12,800
- Which of the following best describe a trial balance?
- Shows the financial position of a business
- It is a special account
- Shows all the entries in the same place
- It is a list of balances on the same place
- It is used to calculate profit
- The main purpose of manufacturing statement is to deduce
- The cost of production
- Cost of raw materials available for use
- Prime cost
- Factory profit
- The cost of sales
- Match the answer in LIST B with the response in LIST A and write the letter of the most correct response.
LIST A | LIST B |
- Maximum amount approved by parliament for various service in the appropriation act
- An account with the bank of Tanzania into which all government revenue flow
- 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
- The year start from 1st July to 30th June next year.
- 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
| - Accounting officer
- Accrual basic
- Ambit of vote
- Cash basic
- Child
- Controller and auditor general
- Consolidated fund
- Development Expenditure
- Exchequer account
- Family
- Government Accounting financial year
- Imprest system
- Paymaster General
- Petty cash
- Receiver of revenue
- Public money
|
SECTION B (40 MARKS)
Answer all questions in this section
- (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
- (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
- (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
Item | 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.
| ASSETS | CAPITAL | LIABILITIES |
-
| 157000 | 86500 | ……….. |
-
| ………. | 247000 | 885000 |
-
| 273100 | ………. | 63500 |
-
| ………… | 381500 | 13430 |
-
| 205000 | 176200 | ……… |
- 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.
- 800 cases sold at a price of 600@
- 400 cases sold at a price of 1,500@
- 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
- Consignment outward A/C
- Consignment to Munyabi A/C
SECTION C: (40 MARKS)
Answer only Two questions in this section
- Given the following Trial balance of Madulu ltd as on 31st August 2015
Item | DR TSH | CR TSH |
Drawing and capital Motor van Purchases and sales Inventory at start Returns Carriage inwards Carriage outwards Wages and salaries Commission discounts Provision for bad debts Premises Bad debts Insurance Rent received Provision for depreciation motor van Debtors and creditors Bank Petty cash | 4,000 30,000 60,000 5,000 6,000 2,000 1,000 8,000 5,000 40,000 800 4,000 10,000 1,200 | 51,900 80,000 3,000 7,000 9,000 600 2,500 2,000 9,000 12,000 |
| 177,000 | 177,000 |
Additional information
- Inventory at close Tsh 6,000/=
- Accruals were wages shs 1,500/= and commission Tsh 1,200/=
- Prepayment insurance shs 700/= and Rent receivable Tsh 900/=
- Goods taken by the owner for own use Tsh 400/=
- Provision for bad debts in 5% on debtor
- 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
- 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.
Item | Tshs | Item | Tshs |
Opening Stock: Department -X -Y -Z Purchases: Department -X -Y -Z Sales: Department -X -Y -Z Closing Stock: Departments -X -Y -Z | 75,780 48,000 40,000 281,400 161,200 88,800 360,000 270,000 180,000 90,160 34,960 43,180 | Salaries and wages Advertising Rent Discount allowed Discount Received Sundry expenses Depreciation on Furniture and fittings | 96,000 4,500 21,600 27,000 1,600 24,300 1,500 |
Additional information
- Goods having a transfer price of shs 21,400/= and shs 1,200/= were transferred from Departments X and Y respectively to Department Z
- The various items shall be apportioned among three Departments in the following proportion
S/N | Item | Depart X | Depart Y | Depart Z |
-
| Rent | 2 | 2 | 5 |
-
| Salaries and wages | 1 | 1 | 1 |
-
| Discount received | 8 | 5 | 3 |
-
| Depreciation | 1 | 1 | 1 |
-
| All other expenses | On the basis of sales |
Required
- Departmental income statement for the year ended 31st December 2020
- Determine the business’ operational result
- Comment on the performance of departmental
- 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
Tshs
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;
Tshs
Debtors: Debit balance 206,160
Credit balances 540
Creditor: Credit balances 83,115
Debit balances 825
Required;
- Prepare control accounts
- State the amount of errors occurred in each account.
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING EXAM SERIES 122
THE PRESIDENT’S OFFICE
MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
COMPETENCE BASED SECONDARY EXAMINATION SERIES
BOOK-KEEPING TERMINAL EXAMINATION
FORM FOUR -2022
Instructions
- This paper consists of sections A, B and C with a total of nine (9) questions.
- Answer all questions in sections A and B and two (2) questions from section C.
- Section A carries twenty (20) marks and section B and C carry forty (40) marks each
- Non programmable calculators may be used.
- Cellular phones and any unauthorised materials are not allowed in the examination room.
- Write your Examination Number on every page of your answer booklet(s).
SECTION A (20 Marks)
Answer all questions in this section.
- Which categories of errors represent errors which do not affect the Trial Balance agreement?
- Errors caused by inaccurate arithmetic operations.
- Errors which cancel out each other in the trial balance.
- Errors caused by omission of a balance of account.
- Errors caused by entering an item once in an account.
- Errors caused by posting an item on a wrong side of an account.
- Costs incurred for machine repairs in accounting for departmental businesses is appropriately apportioned according to
- the value of machinery in each department.
- the value of non-current assets in each department.
- the number of machines in each department.
- the number of machine hours used in each department.
- the floor area occupied by each machine.
- How is the capital for a non-profit making organization described?
- Capital employed fund
- Capital supplied fund
- Accumulated fund
- Gross working capital fund
- Accumulated shares fund
- How would you record the commission due to consignee in the books of the consignee?
- Dr. Consignee's account and Cr. Consignment account
- Dr. Consignment account and Cr. Profit and loss account
- Dr. Profit and loss account and Cr. Consignment account
- Dr. Consignor's account and Cr. Commission Receivable account
- Dr. Goods on consignment account and Cr consignment account
- 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.
- TZS 33,500
- TZS 27,000
- TZS 16,500
- Tzs 24,500
- TZS 7,500
- 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?
- TZS 15,900
- TZS 70,000
- TZS 54,100
- TZS 140,000
- TZS 101,820
- A debit balance of TZS 5 ,000 in a cash account shows that
- cash has been overspent by TZS 5,000.
- TZS 5000 was the total of cash paid out.
- the total of cash received was less than TZS 5,000.
- there was TZS 5,000 cash in hand.
- TZS 5,000 was the total of cash received.
- The act of recording transactions in any subsidiary book is called
- posting.
- double entry system.
- transaction.
- balancing.
- journalizing.
- The primary objective of trial balance is
- to make sure that total amount of debit side and credit side are equal.
- to detect and avoid errors and frauds.
- to prepare trading, profit and loss account and balance sheet.
- to test the arithmetic accuracy of the ledger.
- to prepare suspense account.
- What would you consider to be the main source of government revenues?
- Royalties
- Penalties
- Taxes
- Interest
- Fees
- Which of the following would best describe the use of a control account?
- To check the arithmetical accuracy of ledgers
- To show costs ascertained in the ledgers
- To show allowance given by suppliers
- To check the debit balance of sales account
- To show the direct costs allocated to a section of a business
- How would you categorize the subscription paid in advance in the balance sheet of a non-profit making organization?
- A current liability
- A non-current liability
- A current asset
- A non-current liability
- Accumulated fund
- The term depreciation would best be described as the
- value of money used to replace non-current assets.
- value of non-current assets consumed due to its use.
- gradual increase in value of non-current assets due to its use.
- value of a non-current asset that remains after its use.
- amount incurred to repair the non-current assets
- Which of the following depreciation methods uses the reduced value to compute the depreciation of a non-current asset?
- Straight line method
- Sum of the years digits method
- Diminishing balance method
- Machine hours rate method
- Unit of output method
- Prime cost is obtained as a result of
- Cost of raw materials used plus direct wages and factory overhead cost.
- Cost of raw materials used plus direct wages.
- Factory overhead cost plus direct wages.
- Factory cost of goods manufactured less cost of raw materials used.
- 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.
LIST A | LIST B |
- Excess of current assets over liabilities of a business
- Non-current asset plus current
- Total assets of business less current liabilities
- Total current assets
- The amount of money invested in business by the owner
| - Asset capital
- Gross working capital
- Current capital
- Gross capital employed
- Net working capital
- Net capital employed
|
SECTION B (40 Marks)
Answer all questions in this section.
3. Briefly explain the following accounting concepts:
- Business entity
- Money measurement
- Accruals
- Going concern
- 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
Purchases | 2,000,000 |
Stock (1st Jan. 2017) | 150,000 |
Stock (31st Dec. 2017) | 300,000 |
Sales | 2,500,000 |
Expenses | 200,000 |
Rent received | 100,000 |
Warehouse wages | 80,000 |
Carriage inwards | 50,000 |
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:
Dr | Cr |
Details | TZS | Details | TZS |
Balance b/d | 202,500 | Salaries | 50,000 |
Subscription: Year 2016 | 40,000 | Printing and postage | 20,000 |
Year 2017 | 206,000 | General expenses | 7,500 |
Year 2018 | 60,000 | Drama expenses | 4,500 |
Donations | 5,400 | Stationery | 1,500 |
Proceeds of drama | 9,500 | Municipal taxes | 4,000 |
Sale of waste papers | 4,500 | Charity | 3,500 |
| | Electricity bills | 1,450 |
| | | |
Additional Information
- There are 500 members, each paying annual subscription fee of TZS 450.
- TZS 9,000 is still in arrears for the year ended 2016 and it was decided to be written off.
- Buildings stand in the books at TZS 500,000 and are to be depreciated at 5%.
- General expenses of TZS 2,100 for the year have not been paid.
Use the information provided to prepare the following:
- Statement of Affairs at 1stJanuary 2017.
- Subscriptions Account for the year ending 31stbecember 2017.
- Statement of Income and Expenditure for the year ending 31 StDecember 2017.
- 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 |
Premises | 350,000 | 295,000 |
Furniture | 60,000 | 53,000 |
Motor van | 18,000 | |
Trade debtors | 62,800 | 74,300 |
Trade creditors | 39,500 | 40,700 |
Loan from bank | 120,000 | |
Salaries due | 92,000 | 75,000 |
Prepaid insurance | 25 ,ooo | 36,000 |
Rent received in advance | 40 ,000 | 68,000 |
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
| DR | CR |
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) Royalties 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 Salaries Sales expenses Commission on sales Rent Insurance General administration expenses Office Rates Discount allowed Carriage outwards Sales Account receivable & Account payable Cash at Bank Cash in hand Drawings Capital as at 1/1/2018 | 420,000 778,000 270,000 6,500,000 140,000 70,000 7,400,000 4,600,000 240,000 620,000 150,000 274,000 880,000 600,000 230,000 240,000 84,000 268,000 46,000 96,000 1 18,000 2,846,000 336,000 30,000 1,200,000 | 20,000,000 1,280,000 7,156,000 |
28,436,000 | 28,436,000 |
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.
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING EXAM SERIES 89
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT’S OFFICE
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
FORM FOUR MID TERM EXAMINATION-2021
033/1 BOOK-KEEPING
Time: 3 Hours AUG, 2021
Instructions
- This paper consists of three sections A, B and C with a total of 9 questions.
- Answer all questions in section A and B and only two (2) questions from section C.
- Section A carries twenty (20) marks, section B forty (40) marks and section C forty (40) marks.
- Non programmable calculators may be used.
- Cellular phones, and other authorized materials are not allowed in the examination room.
- Write your examination number on every page of your Answer booklet(s).
SECTION A (20 MARKS)
Answer all questions in this section
- 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
- 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
- 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
- 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
- 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/=
- Working capital is a term meaning.
- The excess of current liabilities over current liabilities
- The excess of the current assets over the current liabilities
- the excess of the current assets over non-current liabilities
- The excess of current assets over non-current assets.
- The excess of non-current Assets over current liabilities
- 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.
- TZS 840 B. TZS 560 C. TZS 464 D. TZS 696 E. TZS 506
- 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.
- In the business of C. Sangster, who owns a clothing store, which of the following is the capital expenditure?
- 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.
- Manufacturing account is used to calculate:
- 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
- Depreciation can be described as the : _______
- Amount spent to buy a non –current asset
- Salvage value of a non-current asset consumed during its period
- Cost of the non-current asset consumed during its period
- Amount of money spent replacing non-current asset
- Cost of old asset plus new assets purchased
- A bank reconciliation statement is a statement:
- Sent by bank when the account are overdrawn
- Drawn to verify cash book balance with the bank statement balance
- Drawn up by the bank to verify the cash book
- Sent by the bank to the customers when errors are made
- Sent by the bank customers to the friends.
- 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
- 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
- If we take goods for own use, we should
- Debit drawings Account: Credit Purchase Account
- Debit Purchases Account: Credit Drawings Account
- Debit Drawings Account: Credit Inventory Account
- Debit Sales Account: Credit Inventory account
- debit inventory Account: Credit Drawing Account
- if a partnership maintains a fixed capital account, then the partner’s share
of profits is:
- 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
- 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 |
- 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.
- These are payments received by a firm or person by cheque but they are not yet passed through the banking system.
- These are fees deducted by the bank for different services made on the current account.
- These are payments made by the customer firm direct to the bank account of supplier firm.
- These are payments directed by the account holder to be made by the bank on his behalf.
| - Standing order
- Dishonored cheques
- Unpresentedcheques
- Errors
- Unaccredited cheques
- Dividents
- Direct transfers
- Bank charges
|
SECTION B (40 MARKS)
Answer all questions in this section.
- 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/=
- What is the term used to mean the difference between cost value and book value.
- Outline four reasons that could be the causes for him to dispose the car for less than the cost value.
- 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.
- Define the following terms
- Discount received
- Invoice
- Discount allowed
- Carriage inwards
- Carriage outwards
- (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.
- 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
- Statement of manufacturing costs for the year ended at 31 stDec 2007
- Income statement for the year ended at 31.12.2007
- 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
January 1 Bought machine ‘A’ 10,000
July 1 Bought machine ‘B’ 6,000
2016
March 31 Bought machine ‘B’ 8,000
2017
October 7 Sold machine ‘A’ – proceeds 5,500
November 5 Bought machine ‘D’ 12,000
2018
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
Prepare;
- The machinery accountfor the period 1st January 2015 to 31st December 2018
- The accumulated provision for depreciation on machinery account, for the period 1st January 2015 to 31st December 2018.
- 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
Required;
Draw up the relevant total accounts entering end of year total for account receivable and account payable.
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING EXAM SERIES 67
THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, LOCAL ADMINISTRATION AND LOCAL GOVERNMENT
FORM FOUR BOOK KEEPING EXAMINATION MAY
Time 3:00 Hours MAY 2020
Instructions
- This paper consists of sections A, B and C with a total of seven (7)questions.
- Answer allquestions.
- Calculators, cellular phones and any unauthorised materials are notallowed in the examination room.
- Write your Examination Number on every page of your answer booklet(s).
SECTION A (20 Marks)
Answer all questions in this section.
- 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
- the business owner has Tsh. 20,000 cash in hand.
- the bookkeeper has drawn Tsh. 20,000 in his cash book.
- the shop keeper lost Tshs. 20,000 from the business.
- the shop keeper sold goods on credit for Tsh. 20,000.
- the business owner spent Tsh. 20,000 more than he/she has received.
(ii) Sales invoices are first entered in the
- cash book
- purchases journal
- sales account
- sales journal
- purchases account.
(iii) Which of the following are the examples of revenue expenditure?
- Purchases of goods and payment for electricity bill in cash
- Repair of van and petrol costs for van
- Buying machinery and paying for installation costs
- Electricity costs of using machinery and buying van
- 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?
- Unearned revenue
- Accrued expenses
- Accrued revenue
- Depreciation expenses
- Accumulated depreciation
(v) The total of the Returns Outwards Journal is transferred to the
- credit side of the returns outwards account
- debit side of the returns outwards account
- credit side of the returns outwards book
- debit side of the purchases returns book
- debit side of the sales returns book.
( vi) If current account is maintained then the partners’ share of profit must be
- debited to partners’ capital accounts
- credited to partners’ capital accounts
- credited to profit and loss appropriation account
- debited to partners’ current accounts
- credited to partners’ current accounts.
(vii) The value of closing inventories is found by
- adding opening stock to purchases
- deducting purchases from opening stock
- looking in the stock account
- doing a stock taking
- adding closing stock to sales account.
(vii) Depreciation can be described as the
- amount spent to buy a noncurrent asset
- salvage value of a noncurrent asset
- cost of the noncurrent asset consumed during its period
- amount of money spent replacing noncurrent asset
- 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
- debited to partners’ capital account
- credited to partners’ capital account
- debited to partners’ current account
- credited to partners’ current account
- credited to partners’ appropriation account.
(x) Which of the following is NOT an asset?
- Buildings
- Loan from K Hamis
- Accounts receivable
- Cash balance
- 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 | - Working capital ratio
- Acid test ratio
- Inventory ratio
- Earnings per share ratio
- Parables ratio
- Dividend cover ratio
- Inventory turnover ratio
- Gross profit ratio
- Equity ratio
- Receivables ratio
- Gearing ratio
- Return on capital employed ratio
- Profit margin ratio
- Debt ratio
- 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:
Transactions | Dr | Cr |
(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.
2011
July 1 Majura buys four TVs for a total of sh. 110,000.
3 Majura pays for repairs sh. 84,000.
4 Majuni pays office rent sh. 30,000 and advertising expenses sh. 9,000.
6 Majuni pays for packaging materials sh. 3,400.
7 Majuni buys for a TV in excellent condition for sh. 60,000.
31 Majura sells the five TVs to various customers, the sales being completed on this data and totalling sh. 310,000.
Show the relevant accounts in the books of both joint ventures.
7. On 31st December, 2008 the bank column of Tengeneza’s cash book showed a debit balance of sh. 15,000. The monthly bank statement written up to 31st December, 2008 showed a credit balance of sh. 29,500.
On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book:
Dividends of sh. 2,400 had been paid directly to the bank.
A credit transfer TRA and Customs VAT refund of sh. 2,600 had been collected by the bank.
Bank charges sh. 300.
A direct debit of sh. 700 for the Charity subscription had been paid by the bank.
A standing order of sh. 2,000 for Tengeneza’s loan repayment had been paid by the bank. Tengeneza’s deposit account balance of sh. 14,000 was transferred into his bank current account.
A further check revealed the following items:
Two cheques drawn in favour of Tamale sh. 2,500 and Fadiga sh. 2,900 had been entered in the cash book but had not been presented for payment.
Cash and cheques amounting to sh. 6,90 had been paid into the bank on 31st December, 2008 but were not credited by the bank until 2nd January, 2009.
(i) Bring the cash book (bank column) up to date, starting with the debit balance of sh. 15,000, and then balance the bank account.
(ii) Prepare a bank reconciliation statement as at 31st December, 2008.
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING EXAM SERIES 11
THE PRESIDENT’S OFFICE
MINISTRY OF EDUCATION AND VOCATIONAL TRAINING
MID TERM EXAMIATIONS
024 BOOK- KEEPING FORM FOUR
Duration: 2:30 Hours
INSTRUCTIONS:
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
- 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
- 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)
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
i | ii | iii | iv | v | vi | vii | viii | ix | x |
| | | | | | | | | |
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
GROUP A | GROUP B |
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. |
i | ii | iii | iv | v | vi | vii | viii | ix |
| | | | | | | | |
SECTION B (20 MARKS)
3.a) Write short notice on the following term
- Deferred revenue (01 mark)
- Conversion costs (01 mark)
- General journal (01 mark)
- Accounting (01 mark)
- 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
- On dispatch of goods (01 mark)
- On payment of expenses on dispatch (01 mark)
- On receiving advance (01 mark)
- On the consignee reporting sales as per A/S (01 mark)
- For expenses incurred by the consignee as per A/S (01 mark)
- For commission payable to the consignee (01 mark)
- When advance is given (01 mark)
- In case of profit (01 mark)
- In case of loss (01 mark)
- When consignment is partly sold (01 mark)
SECTION C (60 MARKS)
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 58,000 | 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 58,000 |
On the same date they agreed to admit Pendo on the following conditions
- Pendo to contribute a capital of shs 10,000 for cash
- Pendo to pay shs 1000 in cash as premium
- The premium is raised in the books and with drawn by old partners.
- Pendo to pay in cash shs 500/= to credit his current account
- Pendo come with creditor shs 3000/= and stock shs 5000/=
- The money collected were paid into a firm’s bank account.
REQUIRED:
- Open relevant ledger account for the admission of Pendo
- Balance sheet after admission of Pendo (15 marks)
5. The following information relating to power Mabula Ltd for the period ended 31/12/2007
- Tsh 60,000/= were debited against the bank account under the directions of chief accountant in respect of clearing an overdue liabilities
- The bank statement showed a debit of Tsh 43,500/= being charges against the account holder power Mabula
- Tsh 16,000/= were paid but recorded as a receipt in the cash book. The cheque for this had been encashed in the bank
- Issued cheque but not presented to the bank for payment was Tshs 177,000/=
- Tshs 39,000/= had been credited to the account but it related to another bank account holder
- A payment of Tshs 66,900 had been recorded as Tsh 69,600 in the cash book.
- Tshs 48,000/= had been deposited directly to the bank where the account was credited
- 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”
- Tshs 50,000/= were debited in error by the bank account holders another bank account and hence credited to this account
- 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.
- The cash book balance was Tshs 228,310/= while the bank statement balance was Tshs 227,510/= both balances were favourable
REQUIRED:
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
REQUIRED:
- Prepare a trial balance as at 30th November 1997 and
- 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
- The sports equipment sold during the year had a book value of shs 3500/=. Depreciation on sports equipment is provided at 20%
- The premises that had cost 120,000 some years ago are held on a 60 year lease
REQUIRED:
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)
END
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING EXAM SERIES 5