THE UNITED REPUBLIC OF TANZANIA

PRESIDENT’S OFFICE, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

NJOMBE REGION  

FORM SIX PRE-MOCK EXAMINATION CODE: 153/2                   ACCOUNTANCY 2

TIME: 3:00 HRS                                        Tuesday, 22^nd August 2023 P.M  

Instructions

1. This paper consists of section A and B with a total of eight (08) questions

2. Answer all questions in section A and three (03) questions from section  

3. Section A carries forty (40) marks and section B carries sixty (60) marks

4. Non-Programmable calculator maybe used.

5. Cellular phones and any unauthorized unauthorized materials are not allowed in the examination room

SECTION A (40 MARKS)

Answer all questions from this section

1.      Write short notes on the following

(i)       Auditor

(ii)    Internal Audit

(iii)  External Audit 

(iv)   Unqualified Audit Report

2.      Explain five (05) Major Components of Computerized Accounting System 

3.      Nyanza Ltd Company Supply their product in cases charged out to customer at TZS 250@ Customers are given a credit of TZS 200 per cases provided if they returned cases in a good condition within three months of issued. At the end of each financial year all cases in stock in the warehouse and in the hand of customers are valued at 50@ On 1st January 1st January 2007,1200 cases were in the Company warehouse and 4800 cases were in the customers.

During 2007, 3000 cases were bought for 100@

            14,400 cases charged out to customers

           12,500 cases returned by customers

           300 cases scrapped and sold for 10@

 On 31st December 2007, 5,000 cases were within customers who were still entitled to.

 Required

(a)   Cases Stock Account

(b)  Cases Suspense Account

4.      Explain the meaning of the following as used in Company Accounting

(a)   Share Capital

(b)  Share Premium

(c)   Share Discount

(d)  Par Value of Share

(e)   Call in Arrears of Share

SECTION 'B' (60 Marks)

Answer three (03) questions from this section

5.      A company makes a single product with a sales price of TZS 10 @ product and a Marginal (Variable) cost of TZS 6 @ unit. Fixed Costs are TZS 60,000 per annum

 Required

(a)   Number of units to Break Even

(b)  Sales in Shillings at the BEP

(c)   Contribution Margin Ratio (CMR)

(d)  Number of units to be sold in order to achieve a profi of TZS 20,000 p.a 

(e)   Number of units required to increase the profit by TZS 1,000 p.a    Under the following conditions

(i)     Because of increasing cost, the Marginal Cost is expected to be TZS 6.50 per unit 

(ii)  Fixed Costs are expected to be TZS 70,000 p.a

(f)    If the taxation rate is 40%, How many units will be needed to be sold to make a profit              after tax of TZS 20,000

6.      Benja and Willy who share Profit and Loss equally decided to dissolve the partnership as at 31st December 1978 their Balance Sheet on that date was as follows

The cash collected from debtors was TZS 5,000, Plant and Machinery TZS 8,000, Motor vehicle 5,500 and Stock TZS 3,800, the expenses of dissolution was TZS 200 and discount received on creditors was TZS 300  Show the following Ledgers

(i)     Realization Account

(ii)  Partner's Capital Account

(iii)Bank Account

7. Mlangwa Enterprises is a small business with four (04) employees. Workers have 8 hours working day for 20 days in a month. Time worked in excess of this compensated at twice the rate. There is a guarantee pay for 160 hours. During the month ended October 31st 2000, the following data were made available.

Additional information

(a)P.A.Y. E: Salary above TZS 50,000 but not exceeding TZS 75,000 is 5% of excess

• Salary above TZS 75,000 up to TZS 150,000, is TZS 1,250 plus 10% of the amount in excess of TZS 75,000

(b)NSSF is 5% of Basic Salary to be contributed by employee and 15% of Gross Salary to be contributed by employer  (c)RAAWU is 2% of Basic Salary

(d)Housing is 20% of Basic Pay paid to all employees

(e)Every employee is entitled to Transport Allowance of TZS 18,000 per month and TZS 15,000 per month as Meal Allowance 

Required

Draft the above details in a Salary Slip for each employee for month of April.

8. Manyonyi Publishers printed books on Advanced Accounting at a minimum rent of TZS 20,000 p.a, Royalty being payable @ TZS 7.50 per copy sold and the number of copies sold were as follows;  

 Required

 Prepare necessary books of a Lessor 

THE UNITED REPUBLIC OF TANZANIA

PRESIDENT’S OFFICE, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

NJOMBE REGION  

FORM SIX PRE-MOCK EXAMINATION

CODE: 153/1                     ACCOUNTANCY 1

TIME: 3:00 HRS                                        Monday, 21^nd August 2023 P.M  

Instructions

1. This paper consists of section A and B with a total of eight (08) questions

2. Answer all questions in section A and three (03) questions from section B

3. Section A carries forty (40) marks and section B carries sixty (60) marks 

4. Non programmable calculator maybe used 

5. Cellular phones and any unauthorized materials are not allowed in the examination room

SECTION A (40 Marks)

Answer all questions from this section

1.      Briefly explain five (5) qualitative characteristics of useful accounting information.

2.      The following are credit purchases made by Mkali Kwanza Ltd for January 2022.You are required to record them in the purchases journal.

January 5; Bought goods on credit from IPP TZS 800,000 

January 11; Bought goods on credit from Kwanza Ltd TZS 1,800,000, less 5% trade discount.

January 17; Bought goods on credit from Zenu TZS 750,000

January 22; Bought goods on credit from IPP TZS 500,000

January 27; Bought goods on credit from Zenu TZS 600,000

January 29; Bought goods on credit from IPP TZS 700,000

January 30, Bought goods in cash from Kwanza Ltd TZS 400,000

3.      The following are the business transactions of Kayamu enterprises recorded in different dates for the month of April, 2022

April 4: Extra Capital of TZS 5,000,000 paid into the bank bad been entered in sales account.

April 8: Goods taken for own use TZS 50,000 had been debited to sundry expenses account.

April 11: credit sales of TZS 150,000 was omitted in the books of account.

April 17: Repairs to motorvan TZS 1,500,000 have been debited to motorvan account.

April 26: Cash received from Mr Moro TZS 350,000 was credited to Mr Omoro account.

Required:

Give the journal entries to correct the different errors recorded in the books of Kayamu enterprises (Ignore narrations).

4.      Write short notes on the following

(a)   Ex- div

(b)  Cum- div

(c)   Debit note

(d)  Credit note

SECTION 'B' (60 MARKS)

Answer three (03) questions from this section.

5.      a) What do the following two types of ratios measures?

(i)     Liquidity ratios

(ii)  Profitability ratios

(b)The selected financial data for Vanja bei Ltd company is presented below:

               Income statement for the year ended at 31 march 2014                                                                                                                                 TZS

Sales........................................................................248,600,000

Return inwards........................................................15,200,000

Cost of goods sold...................................................155,750,000

Operating expenses..................................................43,390,000

Net profit....................................................................34,260,000

(b) statement of financial position as at 31 march 2013 and 317 march 2014

From the above information given calculate the following ratios

(a)   Quick ratio

(b)  Rate of Stock Turnover

(c)   Debtor collection period in month

(d)  Gross Profit ratio

(e)   Return On Capital Employed (ROCE)

6.      At the beginning of the financial year commercial on January 2019 company had a balance of TZS 744,000 and Accumulated depreciation of plant was TZS 410,000. The Company policy is to provide depreciation by using Reducing Balance Method applies to Asset held at the end of financial year at the rate of 20% per annum. In September 2019 the Company sold the plant for TZS 72,000 additional installation cost totaled to TZS 8,000. During the year major repairs costing TZS 12,600 had been carried out on the plant and new motor had been fitted in November 2019 at cost of TZS 3,800. A further overhead costing of TZS 5,400 had been carried out during 2019.The company acquired new replacement plant on 30th December 2019 at cost of TZS 192,000 inclusive of installation charge of TZS 19,000

 You are required to prepare:

(a)   Plant Account

(b)  Accumulated depreciation for Plant Account

(c)   Plant Disposal Account

7.      The following is a Trial Balance of PABLO as on 31st December 2020.You are required to prepare Statement of Profit or Loss and Statement of Financial position as on 31st December 2020

The following adjustments are to be made 

(a)   Inventory as at 31st December 2020 was valued at TZS 725,000

(b)  A provision for bad and doubtful debts is to be created to the extent of 5% on Sundry debtors

(c)   Depreciate Furniture and Fittings by 10% and Motorcar by 20%

(d)  Purchases include purchase of furniture worth TZS 50,000

(e)   Account Receivables of TZS TZS 25,000 include bad debts

(f)    Withdraw goods worth TZS 25,000 during the year

(g)  Printing and Stationery Expenses of TZS 55,000 relating to last year had not been provided in       that last year but was paid in this year by debiting outstanding Liability

(h)The salesman is entitled to a commission of 5% on total sales

(i)Sales include goods worth TZS 75,000 sent out to FEZA schools company on approval and             remaining unsold on last date, the cost of goods was TZS 50,000

8. The following balances extracted from the book of TUTAWEZA suppliers and company for the year ended 31st December 2009

Amount owing to Creditors ...............................................................................520,000

Amount owing by Debtors..................................................................................640,000

 Provision for doubtful debts....................................................................................32,000

allowed................................................................................12,160

 Provision for discount receivables..........................................................................10,400

Transactions during the year

 Bad debts written off..............................................................................................81,600

Discount Allowed..................................................................................................59,720

Discount Received....................................................................................................48,000

   At 31st December 2009

Amount owing to Creditors....................................................................................540,000

Amount owing by Debtors......................................................................................680,000

It is a policy of the Company to transfer any bad debts written off and debts recovered to provision for doubtful accounts and to carry forward and balance off this account at the end of the financial year equal to 5% of Debtors. The Company also create at the end of the year a provision for discount allowable of 2% of the good debtors (i.e. debtors after deducting the provision for doubtful debts) and provision for discount receivable equal to 2% of the creditors.

Discount actually received and allowed are transferred to these provision accounts at the balances to Profit and Loss Account

You are required to prepare the following Ledgers

(a)The Provision for doubtful debts account

(b)The Provision for discount receivable account

(c)The Provision for discount allowable account

OFFICE OF THE PRESIDENT

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM SIX MOCK EXAMINATION – 2023

ACCOUNTANCY 2

INSTRUCTIONS

1. This paper consists of section A and B with a total of eight (8) questions.
2. Answer all question in section A and three (3) questions from section B
3. Each question in section A carries ten (10) marks in section B twenty (20) marks.
4. Working must be shown clearly and submitted
5. Non-programmable calculator may be used.
6. Write your Examination Number on every page of your answer booklet(s)

SECTION A (40 Marks)

 Attempt all questions from this section. Each question carries ten (10) marks

1. As a form six student pursuing ECA combination elucidate briefly the following accounting terms

1. Audit
2. Internal audit
3. Interim audit
4. External audit

2. Mkongwe Beni bought a machine from Banda Co. Ltd under Hire Purchases terms on 1^st July 2018. The cost was TZS 96,000 but Hire Purchases agreement he was required to pay 12 quarterly installments of TZS 9,500 each, the first installment to be paid on the date of purchase. Mkongwe Beni provides 20% depreciation on book value on the non-current assets and he closed his books on 31^st December each year. Interest in the boks of account is apportioned through the hire purchase interest suspense method.

Required: Dhow the following ledger accounts

1. Machinery account (at cost)
2. Banda Co. Ltd account
3. Hire Purchase Interest Suspense account

3. A.Y.Co Lt has having the following stock data as at 31^st march 2022.

Unit   Unit cost (TZS)

March 1. Opening stock  60   1,000

3 Purchases     30   1,000

18 Sold    40   -

28 Purchases     70   1,200

31. Sold    80   -

Required:

Calculate value of closing stock 31^st March 2022 Using FIFO method under perpetual stock system and determine the amount of gross profit if sales were TZS 250,000.

4. DFT company sales its product in an expensive containers, those container are charged out to customers at TZS 2,000/ - each and if returned within the time allowed customer are credited in full. The following information is available for the year ended 31^st December 2020

Required: - Prepare

1. Container stock account
2. Container suspense account

SECTION B (60 Marks)

Answer three (3) questions from this section. Each question carries twenty (20) marks

5. The DDI Coal Ltd. Holds a lease of coal mines from ADB Gold miners Ltd for a period of twelve years, commencing from 1^st April 2001.

According to the lease, the company is to pay TZS 7.50 as royalty per ton with a minimum rent of TZS 150,000 per year. Short workings can; however, be recovered out of the royalty in excess of the minimum rent of the next two years only. For the year of a strike the minimum rent is to be reduced to 60%. The output in tons for the 5 years ending 31^st March, 2007 is as under.

Required: Write up the necessary Ledger Accounts in the books of DDI Coal. CO. Ltd

6. JBD Co. Ltd is a registered Company formed with an authorized capital of Tshs. 25,000,000 in equity shares of Tshs. 500 each. On 1^st July, 2005 80% of the shares were issued to the public for subscription at a premium of 10%. On assessment after the application process was over, the company found that the applications resulted to 120% of the shares issued. To deal with the excess 20% the company decided to reject 100% of the excess applications, their money being refunded in full. The agreement was made to pay Tshs. 150 per share on application; Tshs 150 on allotment (including premium); Tshs 150 on first call due on 1^st September and the balance on second and final call due on 1^st December, 2005. The amount in the respective installments was dully received.

Required: Show the following in relation to the above transactions 

1. Journal entries
2. Ledger accounts
3. Statement of financial position

7. P.Q and R were partners sharing profit and loss in the ratio 3:2:1 no partnership salary or interest on capital being allowed. The balance sheet on 30^th June, 2006 is as follows:

On 1^st July, 2006 the partnership was dissolved, motor vehicle was taken over by Q at value of TZS 500 but no cash passed specifically in respect of this transaction, sale of other

Assets realized the following amounts

      TZS

Goodwill ....................................................... NIL

Plant and Equipment .................................... 5,000

Freehold Property .......................................... 7,000

Stock ............................................................ 3,000

Trade debtors .............................................. 1,600

Trade creditors were paid TZS 11,700 in fully settlement of their debtors. The cost of dissolution amounted to TZS 1,500. The loan from P was repaid, P and Q were both fully solvent and able to bring in cash required but R was forced into bankrupt and was only able pay his creditors  of the amount due. 

You are required to show:

1. Realization Account
2. Capital Account
3. Bank Account

8. Amon, Bakari and Chiku are employed with Ngano Supplies Enterprises. The normal working hours ar 8 per day, 22 days in month. Time work in excess to this is compensated at one and half. The following data relate to the three workers during the month of June 2016.

Name of Employees   Hours worked   rate per hours

Amon      176    TZS 400

Bakari       196    TZS 350

Chiku       190    TZS 500

The following deductions and allowances are effected at the end of each month

1. PAYEE tax: Salary above TZS 45,000 but not exceed TZS 90,000 is 5% of excess amounts, Salary above TZS 90,000 up to TZS 135,000 is TZS 2,250 plus 10% of the excess amount on TZS 90,000 and any above TZS 135,000 is TZS 6,750 plus 20% of the excess amount.
2. PPF contribution 5% is contributed by employee on basic salary and 15% by the employer.
3. Workers association 2% of the gross salary.
4. Housing 10% of basic salary only Chiku housing accommodation.
5. Every employee is entitled to the followings:

• Transport allowance 600/= per day
• Meal allowance 2,000/= per day

6. Chiku to receive further 15,000/= for skills allowance at the end of every month

Required: construct Ngano supplies Enterprises’ Salary slip for the month of the June 2016

OFFICE OF THE PRESIDENT

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM SIX MOCK EXAMINATION – 2023

ACCOUNTANCY 1

INSTRUCTIONS

1.                This paper consists of section A and B with a total of eight (8) questions.
2.                Answer all question in section A and three (3) questions from section B
3.                Each question in section A carries ten (10) marks in section B twenty (20) marks.
4.                Working must be shown clearly and submitted
5.                Non-programmable calculator may be used.
6.                Write your Examination Number on every page of your answer booklet(s)

SECTION A (40 Marks)

 Attempt all questions from this section. Each question carries ten (10) marks

1.                In accounting field, accountants are required to observe various principles, polices and concepts while they are recording and presenting the financial transactions. As a trainee in the accounting field respond on the following.

1. Briefly explain why the life of the business is divided into different segment of time while the business is assumed to continue with its operation indefinitely.
2. The going concern concept is not applicable in all business situations. Justify this statement with four (4) points
3. Listed below are statements that relate to financial accounting and reporting. Identify the accounting concepts and conventions which applied to each statement.

1. Mutanta Corporation records revenue when products are delivered to the customers, even though the cash has not yet been received.
2. Royal Tours Co. ltd recorded land in its statement of financial position by TZS 1,000,000, even though has the current market price of TZS 1,200,000.
3. Romana is the sole owner of Romy fashion shop. She borrowed TZS 30,000,000 to buy a brand new car to be used in her private activities. This liability was not recorded in business’ books
4. Suma Enterprise prepares its financial statements after every year.

2.                ABD Co. Ltd had the following formation relating to the purchases of investment for the year ended 31^st December 2010 – 2011

1. On the 1^st January 2010 TZS 300,000, 6% debenture was bought at TZS 330,000 cum-interest. The interest for this debenture is received on 30^th June and 31^st December.
2. On 1^st May 2010 debentures valued at TZS 400,000 was bought at 95 Ex-interest
3. 1^st October 2010 debenture valued at TZS 400,000 was sold at 102 Ex-interest
4. On 31^st March 2011 another debenture valued at TZS 250,000 was bought at 96 cum-interests.

Required: From the above information, prepare investment account in the books of ADB Co. Ltd for the year ended 31^st December 2010 – 2011 

3.                Kajale’s business maintains a provision for doubtful debts at 5% and provision for discount at 2% on debtors. It also maintains a reserve for discount on creditors at 2%. From the following particulars, construct the provisions and reserve accounts

Balances on 1^st April 2020.

Provision for bad debts    TZS 4,500

Provision for discount on debtors   TZS 4,000

Reserve for discount on creditors   TZS

Total debtors were

On 31^st March 2021, TZS 100,000 after writing off bad debts of TZS 2,500 and allowing discount of TZS 3,000

On 31^st March 2022, TZS 60,000 after writing off bad debts of TZS 1,500 and allowing discount of TZS 1,750

The creditors on 31^st March 2021 and 31^st March 2022 were TZS 100,000 and 90,000 respectively. Discounts received amounted to TZS 2,500 in 2020 – 2021 and TZS 1,000 in 2021 – 2022.

4.                The financial year of DDI Co. Ltd will end on 31^st December. At 1^st June 2006 the company had in use equipment with a total accumulated cost of TZS 406,860 which had been depreciated by TZS 244,122. During the year ended 31^st December 2006 DDI Co. Ltd purchased new equipment costing TZS 143,400 and sold off equipment which had original cost of TZS 108,000 and which had been depreciated by TZS 84,672 for TZS 17,100. No further purchase or sales of equipment at the rate of 40% using the diminishing balance method. Full year depreciation is provided for on all equipment in use by the company at the end each year.

Required: Prepare the following accounts for the year ending on 31^st December 2006.

1. Provision for depreciation on equipment account
2. Equipment disposal account

SECTION B (40 Marks)

Answer three (3) questions from this section

5.                The following is trial balance of Gama-lee a sole trader as on 30^th June 2019. You are required to prepare income statement and statement of financial position for the year ended 30^th June 2019.

Additional information

The following adjustment are to be made

1. Stock on 30^th June a 2019 was value at TZS 752,000
2. Provision for doubtful debts is to be created to the extent of 5% on sundry debtors
3. Depreciates, furniture and fitting by 10% and motor car by 20%
4. Sales include goods worth TZS 75,000 which were sent out on approval to Diana enterprises and remaining unsold on 30^th June 2019. The cost of goods these goods were TZS 50,000, no entry has been made in the stock records.
5. The salesmen are entitled to a commission of 5% on sales recognized
6. Gama-lee withdrew goods worth TZS 25,000 during the year.
7. Trade debtors include TZS 25,000 for bad debts
8. Trade creditors were under casted by TZS 20,000
9. Printing and stationary expenses TZS 55,000 relating to 2017 – 2018 had not been paid in that year but was paid in this year by debiting outstanding liabilities.
10. Purchases include purchases of furniture worth TZS 50,000/=

6.                Utafaulu Company Ltd with Head Office in Dar es Salaam had a branch in Bukoba. All purchase are made by Head Officer and invoiced to branch at cost plus 50%, which is also selling price to branch. All records to branch are kept by the Head Office. Transaction for branch for the year ended 31^st December, 2016 was

1^st January,2016      TZS

Branch stock at cost      12,560

Branch debtors      1,830

Branch cash       3,210

Transaction during the read      

Goods sent to branch at cost      65,300

Goods returned to Head Officer by branch at cost  1,480

Goods returned by branch debtors Head Office at selling price 990

Goods returned by debtors to branch    840

Cash sales        50,195

Cash received from debtors      36,300

Credit sales        40,120

Bad debts written off      620

Discount allowed to customers    940

Branch expenses paid by branch    3,000

Branch expenses paid by Head Office   17,000

Remittance to Head Office     84,400

31^st December, 2016 – Branch stock at cost    16,600

Required: - Prepare the following ledger accounts:

1. Branch stock account at selling price
2. Goods sent to branch account
3. Branch debtors account
4. Branch cash account
5. Branch stock adjustment account
6. Branch income statement (profit and loss)

7.                The following profit and loss appropriation account was drawn by Kaisho Consruction Co. Ltd for the year ended 31^st December 2021

DR  PROFIT AND LOSS APPROPRIATION ACCOUNT  CR

The following is the statement of financial position (Balance sheet) as at 31^st Dec 2021

Additional information

1. Other market value of ordinary share TZS 1.50 per share, the nominal value of both ordinary and preference share is TZS 1
2. The Company has no long term liabilities but for the purpose of calculating earnings per share and other related ratios preference shares are to be considered as long term liabilities rather than a part of equity
3. 60% of debtors are quickly realizable

1. Capital employed
2. Working capital ratio
3. Quick ratio
4. Ratio of equity to capital employed
5. Debt ratio
6. Earning per share
7. Dividend per share
8. Price earnings ratio
9. Dividend yield ratio
10. Dividend payout ratio

8.                The trial balance presented bellow for Twaha auto services Co. Ltd as at 31^st Dec 2021

In examining the accounting records of the business the following information was revealed.

1. A purchases of inventories for TZS 3,000 paid in cash was erroneously recorded as a purchase of equipment.
2. The beginning balance plus the credits to trade totaled TZS 186,000, the debits to trade creditors totaled TZS 132,000
3. The balance in the accrued salaries account was rechecked and determined to be TZS 1,800.
4. A TZS 4,000 payment received from a customer on account was not posted to the cash account
5. The debit to record the withdrawal of TZS 6,000 in cash by owner was not posted.
6. The balance in the office expenses account of TZS 35,000 was omitted from the trial balance.

Required 

1. Journal entries to record the above errors
2. Suspense account
3. Corrected trial balance