Student's Assessment Number............

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA FORM TWO NATIONAL ASSESSMENT

062 BOOK KEEPING

Time 2:30 Hours Year 2022

Instructions

1. This paper consists of sections A, B and C with a total of nine (9) questions.
2. Answer all questions.
3. Section A carries fifteen (15) marks, section B forty (40) marks and section C carries forty five (45) marks.
4. All writing must be in blue or black ink.
5. All answers must be written in the spaces provided.
6. Non programmable calculators may be used.
7. Cellular phones and any unauthorised materials are not allowed in the assessment room.
8. Write your Assessment Number at the top right hand corner of every page.

SECTION A (15 Marks)

Answer all questions.

1. For each of the items (i) — (x), choose the correct answer from the given alternatjycs and write its letter in the box provided.

(i) James, the owner of coffee shop took TZS 18,000,000 from the coffee shop account. He used the money to buy a motor vehicle for his wife. The act by James is best described as

1. purchases.
2. sales.
3. drawings.
4. capital.

(ii) Mengi sold a machine for cash TZS 8,000,000. What would be the effect of this transaction in the accounting records?

1. Asset of cash will increase, Asset of machine will decrease.
2. Asset of cash will decrease, Asset of machine will increase.
3. Asset of cash will increase, Asset of machine will increase.
4. Asset of cash will decrease, Asset of machine will decrease.

(iii) A Book Keeping teacher asked students in a class to define a Trial Balance. Which definition would you give?

1. Is a statement showing a list of debit and credit balances.
2. Is a statement showing a list of debit balances.
3. Is a statement showing a list of credit balances.
4. Is a statement showing a list of assets and liabilities.

(iv) The following are internal users of financial statements except

1. managers.
2. owners.
3. investors.
4. wholesalers.

(v) What would be the double entry for cash withdrawn from bank for business use?

1. Debit cash account, credit business account.
2. Debit business account, credit bank account.
3. Debit bank account, credit cash account.
4. Debit cash account, credit bank account.

(vi) Mr. Swai purchased goods on credit from Jones for TZS 3,800,000. The supplier offered him a trade discount of 2%. How much would be the amount due to the supplier?

1. TZS 3,876,000
2. TZS 3,800,000
3. TZS 3,724,000
4. TZS 76,000

(vii) During the Book Keeping lesson, students were taught about expenses that can be paid out of petty cash. The following are among those expenses, except

1. van replacement cost.
2. staff travelling cost.
3. wages cost.
4. postage cost.

(viii) The bank column of the cash book showed a credit balance of TZS 1,600,000. If the bank statement shows a standing order payment of TZS 200,000, how much would be the adjusted cashbook balance?

1. TZS 1,200,000 debit balance
2. TZS 200,000 credit balance
3. TZS 1,800,000 debit balance
4. TZS 1,800,000 credit balance

(ix) The appropriate measure to correct budget deficit of the government may involve

1. seeking aids and grants abroad.
2. encouraging more expenditure on unproductive sectors.
3. reducing taxes and levy.
4. increasing recurrent expenditure.

(x) Which error is corrected through the suspense account?

1. Commission received of TZS 210,000 debited to sales account.
2. Credit note issued of TZS 500,000 not recorded in the books.
3. Purchase of office furniture TZS 450,000 debited to purchases account.
4. Purchase of stationery TZS 250,000 entered in the books as TZS 25,000.