THE PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

MOSHI MUNICIPAL COUNCIL

SECONDARY EDUCATION EXAMINATIONS SYNDICATE

062 BOOK KEEPING

FORM TWO MOCK EXAMINATION 

Friday 01^th July 2022pm Time: 2:30Hours 

INSTRUCTIONS

1. This paper consists of three sections A, B and C
2. Answer ALL questions from all sections
3. Use pencil for drawing only

SECTION A:(20 MARKS)

1. For each of the following questions write the letter which represents the correct answer.

(i) The transfer of goods or services from one person to another is known as:

1. Ledger balance 
2. Purchases 
3. Transactions 
4. Transfer of wealth

(ii) The art of recording a financial transaction in a set of books in monetary terms is known as; 

1. Business 
2. Commerce 
3. Book-keeping
4. Stock taking

(iii) The cash or goods taken out from the business for private uses are known as:

A. Profit B. Loss C. Assets D. Drawings 

(iv) The main aim of preparing trading account is to find:

1. Net income 
2. Gross profit or gross loss 
3. Net profit or net loss 
4. Capital of the business 

(v) The following not a source of government revenue:

1. Net salaries 
2. Licenses 
3. Taxes 
4. Loans

(vi) The statement used to check the correctness of the cashbook balance and bank statement balance is known as:

1. Bank reconciliation statement 
2. Balance sheet statement 
3. Assets and capital statement 
4. Bank statement 

(vii) Properties which are held in the business for a long time are called:

1. Fixed capital 
2. Current assets 
3. Fixed asset 
4. Assets

(viii) The sale of goods on credit to Kahaya amounting to Tsh 200,000/= should be recorded as:

1. Debit cash account , credit sales account
2. Debit Kahaya’s account, credit sales account
3. Debit Kahaya’s, credit cash account
4. Debit sales account , credit Kahaya’s account.

(ix) Proper document used when depositing money in the bank is known as:

1. Bank statement 
2. Pay –in-slip 
3. Invoice 
4. Payment voucher 

(x) Which of the following is not a book of original entry?

1. Cash book 
2. Purchases outwards journal
3. Returns outwards journal 
4. Sales ledger 

(xi) A cheque drawing or issued and entered in the cash book but not passed through the bank for payment until after the relevant date is known as:

1. Unpresented cheque 
2. A standing order 
3. Credit transfer 
4. Dishonored cheque 

(xii) The three column cash book records:

1. Cash transactions, and cheque transactions
2. Cash transactions, bank transactions and cash discounts
3. Cash transactions and credit transactions
4. Credit transactions and cash discounts

(xiii) One of the following reasons allows the goods to be returned to the supplier:

A. Durable goods 

B. Consumable goods 

C. Expired goods 

D. Perishable goods 

(xiv) Capital and drawing accounts are classified as:

1. Personal accounts 
2. Nominal accounts 
3. Real accounts 
4. Properties accounts

(xv) Which of the following statements is not correct?

1. Assets – capital = Liabilities 
2. Liabilities + capital = Assets
3. Liabilities + Assets = Capital 
4. Assets – Liabilities = Capital

2. Match the items in LIST A with the responses in LIST B by writing the letter.

SECTION B: (20MARKS)

Answer all questions in this section 

3(a) Classify the following into personal, real and nominal accounts

.3(b) Complete the gaps in the following table

4. John Kibwetere is an account holder in National Microfinance Bank (NMB) who opened current account in that bank. At the beginning of March 2001 balance of cash book and balance of bank statement were the same amount Tsh 200,000, but at the end of that month 31-3-2001 two balances were disagree. Briefly explain five reasons which make two balances to disagree.

SECTION C (60 MARKS)

 Answer all questions

5. The following is a summary of Mamayoyo’s petty cash transaction for the period of 1^st December to 5^th December 2000.

December 1^st received from main cashier Tshs 40,000=

1^st paid sweeping charges Tshs 5,000=

1^st bought coffee, tea and sugar Tshs 6,200=

1^st paid telegram charges Tshs 11,200=

^2nd  paid carriage Tshs 7,500=

2^nd bought postage stamps Tshs 2,500=

3^rd bought stationary Tshs 4,300=

4^th paid carriage Tshs 700=

5^th paid telegram charges Tshs 1,700=

Enter the above transactions into a petty cash book with analysis column of Stationary, Postage, Telegrams and Sundry expenses.

6. Post the following details into the Statement of Financial position of Moshi Traders as at 3112-2004.

Capital Tshs. . . . . . . . . 150,000

Net profit Tshs. . . . . . . . 50,000

Drawings Tshs. . . . . . . . .. 70,000

Creditors Tshs . . . . . . . . . 30,000

Loan from NMB Tshs . . . . . . . . . 130,000

Bank overdraft Tshs. . . . . . . . ... 40,000

Machinery Tshs. . . . . . . . ... 130,000

Motor van Tshs. . . . . . . . . 40,000

Furniture Tshs. . . . . . . . . 25,000

Premises Tshs. . . . . . . . . 53,000

Stock Tshs. . . . . . . . . 17,000

Debtors Tshs . . . . . . . . . 15,000

Cash at bank Tshs . . . . . . . . . 30,000

Cash in hand Tshs . . . . . . . . . 20,000

7. The following is the summary of Cash Book of Bora Brothers Ltd as appeared on 31^st December 2010

NOTE: He receives the following Bank Statements from his manager 

BANK STATEMENT

Require:

a)Prepare adjusted Cash Book

b). Prepare bank reconciliation statement starting with balance as per adjusted Cash Book

PRESIDENT'S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT  

TANZANIA HEADS OF ISLAMIC SCHOOLS COUNCIL  

FORM TWO INTER ISLAMIC MOCK EXAMINATION  

062  BOOK KEEPING

TIME: 2:30 HOURS Thursday, 30^th September 2021 a.m.

Instructions

1. This paper consists of sections A, B and C with a total of seven (7) questions.

2. Answer all questions.

3. Section A and B carry twenty (20) marks each and section C carries sixty (60) marks.

4. All answers must be written in the spaces provided.

5. All writings must be in blue or black ink except for drawings which must be in pencil.

6. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.

7. Write Your Examination Number on the top right of every page.

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 in the box provided.

(i) What is the purpose of book keeping? 

1. To interpret the double entry records
2. To prepare financial statements at a regular intervals
3. To record all the financial transactions of the business
4. To summarize the financial position of the business.

(ii) Which statement describes the purpose of trial balance?

1. It ensures the ledger accounts contain no errors
2. It indicates errors where errors have arisen 
3. It checks the arithmetical accuracy of double entry
4. It prevents errors from occurring.

(iii) General ledger accounts that record incomes and expenses such as purchases, sales, wages and salaries: 

1. Real accounts
2. Personal accounts
3. General accounts 
4. Nominal accounts.

(iv) Which statement describes development expenditure?

1. They are registered in the assets register of the government

2. They are the day-to-day running expenses of the government

3. They are assigned depreciation rate (if applicable)

1. 1 and 2
2. 2 only
3. 3 only 
4. 1 and 3.

(v) The compulsory payments by individuals and firms to the government are of two categories:

1. Fines and penalties
2. Direct taxes and indirect taxes 
3. Open taxes and closed taxes
4. Fees and dividends.

(vi) Why an income statement is prepared?

1. To account for the revenues and expenses of a period
2. To calculate the surplus or deficit of the organization 
3. To list the ledger balances on a particular date
4. To summarize the business bank account.

(vii) Which account concept states that the business transactions must be separated from the personal transactions of the owner?

1. Historical cost
2. Going concern
3. Money measurement
4. Business entity.

(viii) The amount of cash or stock taken from the business by the owner for their personal use:

1. Expenses
2. Income
3. Drawing
4. Profit.

(ix) What is the going concern principle?

1. Accounting records are prepared assuming that the business will continue to operate in the foreseeable future
2. Income and expense should be accounted for in the same way they were accounted for in previous periods
3. Profit should not be anticipated and losses should be written off as soon as they are taken
4. Revenue and costs should be recognized as they are earned or incurred, not when the money is received or paid.

(x) Why would a Bank Manager look at trader’s financial statement?

1. To calculate how fast trade creditors were being paid
2. To check if the trader would be able to repay a loan 
3. To find out if customers will receive continuous supplies
4. To know if inventory levels are too high.

2. Match the items in column A with the response in column B by writing the letter of the response besides the item number in the space provided:

Answers:

SECTION B: (20 Marks) 

Answer all questions in this section

3. Kibonde, an accountant for Bee& Cee Company is very happy as he has just finished preparing the trial balance as at 31^st March 2021 in which the debit column seems to agree with the credit column. However he has been told by assistant that the agreement of trial balance totals is not a proof that the trial balance is free from errors. Outline the possible mistakes (five) that may have been committed in Kibonde’s accounts (ledger)

4. Show the account to be debited and credited in each of the following transactions:

SECTION C: (60 Marks)

Answer all questions in this section

5. The following trial balance was extracted from the books of Muha as at 30^th September 2019.

Trial balance as at 30^th September 2019

 Closing stock was valued at TZS 135,000.

Required:

(a) Prepare his income statement for the year ended 30^th September 2019.

(b) Prepare his statement of financial position as on that date and clearly show the total assets, net assets and owner’s equity.

6.The bank column in the cash book for November 2004 and the bank statement for that month for Kamgunda are:

Cash book

Required:

(a) Write up the cash book up to date and state the new balance as on 30^th November 2004.

(b) Draw up a bank reconciliation statement as on 30^th November 2004 starting with the balance as per adjusted cash book.

7.Bwana Fulani started business on 1^st January 2021 to deal with cheap items with capital of TZS 500,000 in cash. He made the following transactions during the month of January.

Jan 2 Purchased goods for cash TZS 17,500

Required:

Enter the above transactions into the following accounts, balance them at the end of January and bring forward the balances on 1^st February where necessary:

(a) Cash account

(b) Jumong account

(c) Koboko account