FORM TWO BKEEPING NECTA MULTIPLE CHOICE(2005-2018)
FORM TWO BKEEPING MULTIPLE CHOICE 2019

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA

FORM TWO NATIONAL ASSESSMENT

062   BOOK KEEPING

Duration: 2:30 Hours

INSTRUCTIONS. 

  1. This paper consists of sections A, B and C with a total of seven (7) questions.
  2. Answer all questions.
  3. All writing must be in blue or black ink except drawing which must be in pencil.
  4. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
  5. Write your Examination Number at the top right corner 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 the letter in the box provided.

(i) The document used to deposit money in the bank account is known as

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


(ii) Cash or goods taken out of business for private use are called

  1. Loan to owner
  2. Cash to owner
  3. Drawings by owner
  4. Property by owner


(iii) Which one should not be called sales?

  1. Goods sold in cash
  2. Goods sold on credit
  3. Sale of office fixtures
  4. Sales of items purchases.


(iv) Which of the following is a liability to a business?

  1. Loan from Hali safi
  2. Loan to Uncle
  3. Loan interest
  4. Loan repayment.


(v) Which of the following is correct about capital?

  1. Profit reduces capital
  2. Profit does not change capital
  3. Loss increase capital
  4. Profit increases capital


(vi) To which account is the total of the purchases returns journal transferred to?

  1. Returns outwards account credit side
  2. Returns outwards account debit side
  3. Returns inwards account credit side
  4. Returns inwards account debit side.


(vii) Which one of the following is not an asset to a business?

  1. Building
  2. Cash
  3. Creditors
  4. Debtors


(vii) Which of the following are personal accounts?

  1. Buildings and creditors
  2. Wages and debtors
  3. Debtors and creditors
  4. Wages and creditors.


(ix) In which account is the net profit of the business determined?

  1. Trading account
  2. Profit and loss account
  3. Cash account
  4. Bank account


 

(x) Which of the following is a ledger account?

  1. Profit and loss account
  2. Sales journal
  3. Trading account
  4. Cash account.


2. For each of the items (i) – (x), match the descriptions of the terms used in Book Keeping in List A with their corresponding names in List B by writing the letter of the correct response below the corresponding item number in the table provided.

 

List A

List B

(i)     The maximum amount of money an accounting officer can spend.

(ii)  The balance at any point in time remaining to the credit side of the exchequer account

(iii) The Ministry which has been generally vested the task of accounting for all the government money.

(iv) Any person who is appointed in writing to authorize the expenditures for specific items of expenditure.

(v)   Accounts for the basic services provided by the local authorities through the use of the general revenue.

(vi) A group of people who are relate to each other and are entitled for government monetary benefits.

(vii)    A financial year of the government which starts on 1st July and ends 30th June of every year.

(viii) Day to day expenses for executing operations of a government.

(ix) Estimates to cater for the capital of long term projects of the government.

(x)   Government money for the benefit of all citizens in a country.

  1. Recurrent expenditure
  2. Revenue expenditure
  3. General fund
  4. Family
  5. Development expenditure
  6. Capital expenditure
  7. Special fund
  8. Government accounting year
  9. Public money
  10. Accounting officer
  11. Treasury
  12. Authorized officer
  13. Consolidated fund
  14. Warrant holder
  15. Ambit of vote


SECTION B (20 Marks)

Answer all questions in this section

3. Mention five users of accounting information.

(i)     ………………………………………………………………

(ii)  ………………………………………………………………

(iii) ………………………………………………………………

(iv) ………………………………………………………………

(v)   ………………………………………………………………



4. Briefly explain the following terms:

 (a) Double entry book keeping system

………………………………… …………………… ……… ………………………………… ………………………………



(b) Account

……………… ……………………… ……… …………… …………………… ……………… …………………… 



(c) Discount received

………………………………… …………………… ……… ……………………………… …………… …………………



(d) Debtors

…………… ……… ……………… ………… ………………… ……… …………… …………… ………………… …………… ……… 



(e) Current liabilities

……………………………… ………………… ……………  ………… ……………… ……………… ……………………………………



  

SECTION C (60 Marks)

Answer all questions in t his section.

 5. Enter the following balances and record the transactions for the month of April 2018 in the three column cash book of Mrs. Mwalongo, balance the cash book, and bring down the balances.

2018

April 1, Balance b/d    TZS

  Cash     11,000

  Bank      38,500

  Debtors:

  L. Sempeo    16,000

  L. Mushi    10,000

  S. Sogodi    12,000

  Creditors:

  R. Fredy    12,000

  L. Andrew    20,000

  E. Sebogo    28,000

April 3, L. Mushi paid her account by cheque, after deducting 5 percent cash discount.

April 7, Mrs. Mwalongo paid amount owing to R. Fredy by cheque, less 2.5 percent cash account.

April10, withdrew TZS 15,000 cash from the bank for office use.

April 15, Mrs. Mwalongo sold goods worth TZS 24,000 on credit to L. Mushi.

April 17, L. Sempeo paid amount owing by cheque, les 2.5 percent cash discount.

April 20, Mrs. Mwalongo paid wages by cheque TZS 31,500.

April 22, Mrs. Mwalongo paid amount owing to L. Andrew by cheque, after deducting 5 percent cash discount.

April 25, S. Sogodi paid the amount owing by cheque, less 2.5 percent cash discount.

April 28, Mrs. Mwalongo paid the amount owing to E. Sebogo by cheque, after deducting 2.5 percent cash discount.

 



6. T. Thomas, a sole trader keeps his petty cash on the imprest system. The imprest amount is TZS 50,000. The petty cash transactions for the month of February 2017 were as follows:

 2017

 February 1, petty cash in hand TZS 4,670

 February 1, Petty cash restored to imprest amount

 February 3, paid wages TZS 8,760

 February 7, purchased postage stamps TZS 2,940

 February 10, paid wages TZS 9,110

 February 14, purchased envelops TZS 2,280

 February 17, paid wages TZS 8,840

 February 20, paid cash to J. Mureithi a creditor, TZS 4,160

 February 21, purchased stationary TZS 2,750

 February 24, paid wages TZS 8,480

 

Record the given transactions in T. Thomas’s petty cash book for the month of February 2017 and show the restoration of the petty cash to the imprest amount as on 1st March 2017. Use the following analysis columns:

a)      Wages

b)     Stationery

c)      Postage

d)     Ledger 



7. The following balances were extracted from the books of G. George for the year ended 31st  December 2017. Use the information provided to prepare his statement of Financial Position as at 31st December, 2017. 

Details      TZS

Capital      200,000

Loan from K. China    50.000

Loan from Uncle    150,000

Sales       140,000

Furniture     50,000

Loan to Mwajuma    50,000

Buildings     50,000

Net profit     31,270

Land      50,000

Purchases      300,000

Drawings     25,400

Salaries     150,000

Bank overdraft    39,380

Wages      100,000

Creditors     90,200

Motor vehicle     50,000

Fixtures and Fittings    220,000

Stock      23,500

Debtors     41,950

Rent      20,000



FORM TWO BKEEPING MULTIPLE CHOICE 2016

A statement which shows the financial position of the business is called

  1. Tading account
  2. Profit and loss account
  3. Trial balance
  4. Balance sheet


(ii)     Given a desired cash float of Tshs. 5,000/=. If Tshs. 4, 410/= is reimbursed at the end of the period, how much will be spent in the period?

  1.  Tshs. 4,410         
  2. Tshs. 590
  3.  Tshs. 5,000   
  4.  Tshs. 9,410


(iii)   Which of the following is an example of nugatory expenditure?

  1. Payment for services received. 
  2.  Purchases of office equipment. 
  3.  Purchases of office typing machine.
  4. Payment of services not received.


(iv)    Whenever cost of goods sold is greater than sales the outcome presents:

  1.  gross profit    
  2.  gross loss 
  3.  net profit  
  4.  net loss


(v)     An officer appointed in writing by the Treasury and charged with the duty of collecting and accounting for specified public money is called

  1. Collector of revenue
  2. Receiver of revenue 
  3. Authorized office 
  4.  Accounting officer.


(vi)    Discount received is advantageous to the buyer because

  1.  it reduces the quantity of goods bought on credit
  2.  it reduces the value of goods bought on credit
  3.   It reduces the time to pay for goods bought on credit
  4. it reduces cash to be paid for the goods bought on credit


(vii)  At whith ledger are supplier personal accounts found?

  1.  Norminal ledger
  2. General ledger 
  3. Purchases ledger
  4.  Sales ledger.


(viii)The document used to deposit money in the bank is known as

  1.  bank pay-in-slip
  2. bank statement 
  3.  cheque
  4. payment voucher.


(ix)   Which of the following is not shown in he trial balance? 

  1.  Purchases.
  2.  Drawings
  3. Opening stock 
  4.  Closing stock


(x)     A credit balance in a bank account shows:

  1.  the amount available at the end of the period.
  2.  the amount that had been overspent at the end of the period
  3. the total amount paid out at the end of the period 
  4.  the total amount received at the end of the period.


THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA

FORM TWO NATIONAL ASSESSMENT 2016

062   BOOK KEEPING

Duration: 2:30 Hours

SECTION A

1. For each of the items (i) — (x), choose the correct answer and write its letter

(i)A statement which shows the financial position of the business is called

A.Tading account

B.Profit and loss account

C.Trial balance

D.Balance sheet



(ii)Given a desired cash float of Tshs. If Tshs. 4, 410/= is reimbursed at the end of the period, how much will be spent in the period?

A.   Tshs. 4410 

B. Tshs. 590

C. Tshs. 5,000 

D. Tshs. 9,410



(iii)Which of the following is an example of nugatory expenditure?

A.Payment for services received. 

B. Purchases of office equipment. 

C. Purchases of office typing machine.

D. Payment of services not received.



(iv)Whenever cost of goods sold is greater than sales the outcome presents:

A.gross profit 

B. gross loss 

C. net profit 

D. net loss



(v)An officer appointed in writing by the Treasury and charged with the duty of collecting and accounting for specified public money is called

A.Collector of revenue

B.Receiver of reven ue 

C. Authorized office 

D. Accounting officer.



(vi)Discount received is advantageous to the buyer because

A.it reduces the quantity of goods bought on credit

B.it reduces the value of goods bought on credit

C.It reduces the time to pay for goods bought on credit

D.it reduces cash to be paid for the goods bought on credit



(vii)At which ledger are supplier personal accounts found?

A.Norminal ledger

B.General ledger 

C. Purchases ledger 

D. Sales ledger.



(viii)The document used to deposit money in the bank is known as

A.bank pay-in-slip          

B.bank statement 

C. cheque

D. payment voucher.



(ix)Which of the following is not shown in he trial balance? 

A. Purchases.

B.Drawings

C.Opening stock 

D. Closing stock



(x)A credit balance in a bank account shows:

A.the amount available at the end of the period.

B.the amount that had been overspent at the end of the period

C.the total amount paid out at the end of the period 

D. the total amount received at the end of the period.



FORM TWO BKEEPING MULTIPLE CHOICE 2015

(i)       Which of the following is the definition of a balance sheet?

  1. A list of balances after calculating net profit 
  2.  A statement of all liabilities.
  3. A trial balance ata different date.
  4.  A list of balance before calculating net profit.


(ii)      The purchases day book can be described as:

  1. part of the double entry system
  2.  a list of purchases bought on credit 
  3.  a list of suppliers accounts
  4.  a list of purchases bought for cash.


(iii)    Which ofthe following describes the meaningofa trial balance?

  1.  Is the final account in the books.
  2. Shows all the assets balances. 
  3.  Is a list of the balances on the books.
  4.  Discloses the financial position of a business.


(iv)    Which of the following is not personal account?

  1.  Rent and debtors
  2.  Debtors and drawings
  3. Debtors and creditors 
  4.  Drawings and rent


(v)    A cash discount is described as a reduction in the sum to be paid:

  1.   if goods are bought on credit and not for cash
  2.  if either cheque or cash payment is made within an agreed period
  3.  if cash is paid instead of cheques
  4.  if trade discount is also deducted


(vii)  What is meant by trade discount?

  1.  A discount given if the invoice is paid
  2.  A discount given for cash payment
  3.  A discount given to suppliers 
  4.  A discount given to traders


(vii)  What is meant by trade discount?

  1.  A discount given if the invoice is paid
  2.  A discount given for cash payment
  3.  A discount given to suppliers 
  4.  A discount given to traders


(vi)    A cash discount is described as a reduction in the sum to be paid:

  1.   if goods are bought on credit and not for cash
  2.  if either cheque or cash payment is made within an agreed period
  3.  if cash is paid instead of cheques
  4.  if trade discount is also deducted


(ix)    In the trading account, the sales returns should be:

  1.   added to cost of goods sold
  2.  deducted from purchases
  3.   deducted from sales 
  4.  added to sales


(x)      The journal is described as:

  1.    part of the double entry system
  2.  a form of sales day book
  3.  a form of diary
  4.  a supplement to the balance sheet


FORM TWO BKEEPING MULTIPLE CHOICE 2014

Which of the following statements is incorrect?

  1. Assets — Capital = Liabilities 
  2.  Liabilities +CapitaI = Assets
  3.  Liabilities + Assets = Capital 
  4.  Assets - Liabilities = Capital


Which of the following is a liability?

  1.  Machinery
  2. Accounts payable for goods
  3.  Motor vehicles 
  4.  Cash at bank


(iii)     Which of the following best describes the meaning of sales?

  1.  Goods bought for cash
  2.    Goods bought on credit
  3.  Goods bought for resale
  4. Goods paid for cash and credit


(iv)     What is meant by book keeping?

  1.  An art of recording business transactions.
  2. An art of recording cash transactions. 
  3.  An art of recording bank transactions.
  4. An art of recording cash and credit transactions.


(v)       Which of the following is correct?

  1.  Profit does not change capital. 
  2.  Profit reduces capital
  3.  Capital can only come from profit.
  4.  Profit increases capital.


(vi)     In government accounting the term family includes an officers:

  1. wife and children
  2. father, wife and children
  3. and all relatives
  4.  mother, father, wife and children


(vii)    Net profit is calculated in the:

  1.  trading account
  2.  trial balance
  3.  balance sheet
  4. profit and loss account


(viii)  The gross profit can be described as:

  1. excess of sales over cost of goods sold
  2. sales less purchases
  3.  cost of goods sold plus opening stock 
  4.  net profit less expenses of the period


(ix)     The sales day book can be described as:

  1.    part of the double entry system
  2. a list of credit sales
  3. a list of supplier accounts 
  4.  part of real accounts


(x)       A debit balance of Sh. 25,000 in a cash account shows that:

  1.  there was Sh. 25,000 cash in hand
  2. cash has been overspent by Sh. 25,000
  3.  Sh. 25, 000 was the total of cash paid out
  4. the total of cash received was less than 25, 000


2014 - BOOK-KEEPING

SECTION A

1.       For each of the items (i) - (x), choose the correct answer.

(i)Which of the following statements is incorrect?

A.Assets — Capital = Liabilities 

B. Liabilities +Capital = Assets

C. Liabilities + Assets = Capital D. Assets — Liabilities = Capital



(ii)Which of the following is a liability?

A.Machinery

B.Accounts payable for goods

C.Motor vehicles 

D. Cash at bank



(iii)Which of the following best describes the meaning of sales?

A.Goods bought for cash

B.Goods bought on credit

C.Goods bought for resale

D.Goods paid for cash and credit



(iv)What is meant by book keeping?

A.An art of recording business transactions.

B.An art of recording cash transactions. 

C. An art of recording bank transactions.

D. An art of recording cash and credit transactions.



(v)Which of the following is correct?

A.Profit does not change capital.

B.Profit reduces capital

C.Capital can only come from profit.

D.Profit increases capital.



(vi)In governmentaccountingthe term family includes an officers:

A.wife and children

B.father, wife and children

C.and all relatives

D.mother, father, wife and children



(vii)Net profit is calculated in the:

A.trading account

B.trial balance

C.balance sheet

D.profit and loss account



(viii)The gross profit can be described as:

A.excess of sales over cost of goods sold

B.sales less purchases

C.cost of goods sold plus opening stock 

D. net profit less expenses of the period



(ix)The sales day book can be described as:

A.part of the double entry system

B.a list of credit sales

C.a list of supplier accounts 

D. part of real accounts



(x)A debit balance of Sh. 25,000 in a cash account shows that:

A.there was Sh. 25,000 cash in hand

B.cash has been overspent by Sh. 25,000

C.Sh. 25, 000 was the total of cash paid out

D.the total of cash received was less than 25, 000



2.Match the items in Column A with the responses in Column B by writing the letter of the correct response below the item number in the table provided.

LIST A

LIST B

(i)  The amount of resources invested in the business by the owner.

(ii)  The property belonging to the business

(iii)  The property acquired or created and held permanently in the business.

 (iv) The property that one can touch and see.

(v)   A statement of the financial position of an enterprise as at a given date

(vi) The property belonging to a business which is of a temporary nature.

(vii)Activities involving transfer of money or goods from one person to another.

(viii)A schedule of balances, both credit and debit, extracted from the accounts in the ledger.

(ix)The claims for which must be paid in full, within a short period.

(x)The business owner reduces the business resources for personal use.

  1. Tangible assets
  2. Bank balance
  3. Current assets
  4. Revenue receipts
  5. Fixed assets
  6. Current liabilities
  7. Business
  8. Capital
  9. Cash balance
  10. Trial Balance
  11. Credit purchases
  12. Assets
  13. Drawing
  14. Transactions
  15. Balance sheet


3.(a) Mention three classes of accounts. 

(b) Name two sides of account.



4.Identify the account affected by the following transaction and showaction to take in recording the accounts in the double entry system.



Transaction

Account to be debited

Account to be credited

  1. Owner put cash into his own business.
  2. Bought goods for cash
  3. Sold goods for cash
  4. Received cash for rent
  5. Owner withdraws cash from business for personal use

 

 


The following balances were extracted from the books of Mkubwa Nawanawe.

Using the information provided, prepare a trial balance.

Cash at Hand

134,000

Cash at Bank

307,500

Stock at the beginning

600,000

Furniture and fittings

915,000

Machines

1000,0000

Debitors: Mapipa 

                  Mbala

                  Majala

 

25,000

200,000

35,0000

Purchase

220,000

Wages

48,000

Rent

80,000

Electricity

6,000

Sundry expenses

14,000

Discount allowed

2,500

Creditors :  Joti

                     Mpoki

                     Sunche

7,000

45,000

120,000

Sales

945,000

Discount received

20,000

Capital

2,472,500



6.        Lupelo started business on 1st January, 2014 having transferred Sh. 96,000 from his private bank account to the business office. During the month of January he carried out the following transactions:

2014

January 1 Paid Sh. 4,800 for rent for the month and made purchases of Sh. 38,300.

2 Paid Sh. 3,800 for stationery and Sh. 1,920 for stamps. 4 Cash sales Sh. 17,280 and purchased goods for cash Sh. 60,000.

7 Paid Sh. 2,880 in respect of wages to assistant.

10 Borrowed Sh. 48,000 from Katondo, a friend

13 Bought a used pick-up for Sh. 92,160 from Karanga against Sh. 19,200 deposit.

19Cash sales Sh. 42,240

20Paid wages for two weeks, Sh. 5,760.

21Cash sales Sh. 40,000

22Commission received Sh. 20,000

23Bought goods from Webuye Wholesalers Ltd, for Sh. 62,400 on credit.

29Drew Sh. 28,800 for private use.

30Cash sales Sh 26,880

31Paid another Sh. 57,600 off pick-up account.

Write up Lupelos one column cash book



7.        From the following particulars extracted from the books of a trader, prepare trading account for the year ending 30th December, 2013.



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

Sales

155,000

Sales return

8,000

Purchase

140,000

Purchase returns

18,500

Carriage inwards

12,000

Ware house wages

10,000

Opening stock 1 st January, 2013

55,000

Closing stock 31st December, 2013

85,000

LIST A

LIST B

(i)A book ofprime entry used to record all goods bought on credit.

(ii)A book of account where total returns outward is to be posted.

(iii)A book of prime entry used to record all transactions which cannot be recorded in any other books of prime entry.

(iv)A book of prime entry used to record returns outward from goods bought on credit.

(v)A book of account where the total credit purchases is posted

(vi)The part of a book of prime entry used to record many small payment and high frequency made on cash.

(vii)A book of prime entry used to record returns inward for goods sold on credit.

(viii)A book of prime entry which is used to record all receipts and payments made on the spot.

(ix)A book of prime entry used to record all goods sold on credit

(x)A document which provides information necessary for recording transactions in return outwards book.

 

A. P u r c h a s e s ledger

B. Sales Returns

C. Journal

D. P u r c h a s e s

E. Journal

F. Sales Journal

G. Journal proper

H. Goods received note

I. P u r c h a s e s

J. Returns Journal

K. Sales Ledger

L. Petty Cash Book

M. Debit note

N. P u r c h a s e s invoice

O. Cash book

P. P u r c h a s e s returns ledger

 



3.Mention five sources of government funds.



4.Determine the missing figures from the following table

S/N

ASSETS(Tshs)

LIABILITIES(Tshs)

CAPITAL( Tshs)

  1.  

72,000

28,000

………………..

  1.  

144,000

……………..

88,000

  1.  

………

100,000

30,000

  1.  

20,000

5,400

………….

  1.  

…………..

42,200

80,400



SECTION C

5.Your are provided with Mrs. Masajus Cash book for the month of January 2010. Post the transactions from the cash book to the respective accounts in the ledger and balance off the accounts.

Mrs Masajus Cash book

Date

Details

Folio

Amount

Date

Details

Folio

Amount

1/1/2010

Capital

 

100,000

1/1

Purchase

 

35,000

3/1/2010

Sales

 

80,000

5/1

Purchase

 

50,000

18/1/2010

Sales

 

42,000

10/1

Furniture

 

25,000

 

 

 

 

31/1

Balance

c/d

110,000

 

 

 

220,000

 

 




6.The following is a trial of G.K Traders as at 30th June, 2009

 G.K Traders

Trial Balance as at 30th June, 2009

Name of account

debit

Credit

Sales

 

266,000

Purchase

154,000

 

Rent

3,800

 

Lighting

2,000

 

Stock as at 1/7/2008

20,000

 

Salaries and wages

35,000

 

Land and building

74,400

 

Debtors

31,200

 

Creditors

 

13,000

Cash at bank

15,000

 

Commission received

 

3,000

Drawings

44,600

 

Motor van

16,000

 

Capital

 

114,000

TOTAL




7. On 31st December 2008 N. Traders cash book balance showed a debit balance of Tshs. 420,000/= and bank statement showed a credit balance of Tshs. 396, 000/=

The following transactions did not appear in the bank statement:

(i)A cheque to Ngesa Tshs. 104, 000/=

(ii)Cheque received from Nangasa Tsh 100,000/=

The items which did not appear in the cash book include:

(i)Bank charges Tshs. 18,000/= and Bank interest received Tshs.15,000

(ii)Cash paid direct into bank account Tshs. 120,000/=

(iv) Standing orders-telephone charges Tsh. 145,000/=

Using the information given;

(a)Adjust the cash book to show the correct balance

(b)Prepare bank reconciliation statement as at 31st December, 2008 by using balance as per bank statement.



FORM TWO BKEEPING MULTIPLE CHOICE 2013

(i) An officer in public service who controls public money is called

  1.  Accounting Officer 
  2. Authorized Officer
  3. Paymaster General
  4.  Receiver of Revenue


When cash is paid into the bank the effect is:

  1.  assets of cash increase while bank assets decrease
  2. assets of the bank increase while cash decreases
  3. assets of the business increase while liabilities of the business decrease
  4. fixed assets decrease


(iii)    The total of sales Journal is entered on the:

  1.    credit side of the sales account
  2.   credit side of the sales day book
  3. debit side of the sales journal
  4. debit side of the sales returns account


(iv)    Purchases invoice provides information to be entered in:

  1.  Purchases Journal
  2. Purchases Returns Journal
  3. Sales Journal
  4. Sales Returns Journal


(v)      A Trial Balance is prepared in the business in order to:

  1.  calculate profit or loss
  2. check bank balance
  3. check the accuracy of ledger entries
  4. provide a list of assets and liabilities


(vi)    An account where revenues collected by the Government are deposited before allocating to the Accounting officers is known as:

  1.  current
  2.  exchequer account
  3. government account 
  4.  personal account


(vii)  Which of the following is listed in the bank statement but not in the Customers Cash book?

  1.  Bank charges
  2. Opening balances in the Cash book
  3.  Unaccredited cheques D. Unpresented cheques


(viii)The total return inwards is posted to the:

  1.   credit side of the Purchases account
  2.  credit side of the Sales account
  3. debit side of the Purchases account
  4. debit side of the Sales account


(ix)    The cash or goods taken from the business by the owner for personal use are known as:

  1.  contra-entry
  2. drawings
  3.  gains
  4.  losses


(x)      Which of the following is a liability?

  1. Cash balance
  2. Debtors
  3.  Loan from NBC
  4.   Loan to Anna


2013 - BOOK-KEEPING

SECTION A

1.      For each of the following items, write the letter of the correct answer.

(i)An officer in public service who controls public money is called

A.Accounting Officer B. Authorized Officer

C.Paymaster General

D.Receiver of Revenue



(ii)When cash is paid into the bank the effect is:

A.assets of cash increase while bank assets decrease

B.assets of the bank increase while cash decreases

C.assets of the business increase while liabilities of the business decrease

D.fixed assets decrease



(iii)The total of sales Journal is entered on the:

A.credit side of the sales account

B.credit side of the sales day book

C.debit side of the sales journal

D.debit side of the sales returns account

(iv)Purchases invoice provides information to be entered in:



A.Purchases Journal

B.Purchases Returns Journal

C.Sales Journal

D.Sales Returns Journal



(v)A Trial Balance is prepared in the business in order to:

A.calculate profit or loss

B.check bank balance

C.check the accuracy of ledger entries

D.provide a list of assets and liabilities



(vi)An account where revenues collected by the Government are deposited before allocating to the Accounting officers is known as:

A.current

B.exchequer account

C.government account D. personal account



(vii)Which of the following is listed in the bank statement but not in the Customers Cash book?

A.Bank charges

B.Opening balances in the Cash book

C.Unaccredited cheques D. Unpresented cheques



(viii)The total return inwards is posted to the:

A.credit side of the Purchases account

B.credit side of the Sales account

C.debit side of the Purchases account

D.debit side of the Sales account



(ix)The cash or goods taken from the business by the owner for personal use are known as:

A.contra-entry

B.drawings

C.gains

D.losses



(x)Which of the following is a liability?

A.Cash balance

B.Debtors

C.Loan from NBC

D.Loan to Anna



2.Choose the correct term from List B which matches with the explanation in List A and write the letter against the number of the corresponding explanation in the table provided.

LIST A

LIST B

(i)  A document sent by a seller of goods to a buyer to correct an under-charge in an invoice

(ii)  A document used to record business transactions before posting to the ledger

(iii)  A fund established in order to meet urgent services, the need for which could not have been foreseen

(iv)  A situation whereby revenue is less than https://myfiles.space/user_files/47605_0f9e529f89f807df/1585550768_book-keep-2013_files/image004.jpgexpenses incurred in conducting business

(v)  A term used when money is transferred from cash to bank and vice-versa

(vi)  An allowance made to customers if they buy goods in bulk

(vii)  An authority granted by the Minister for Finance to transfer approved funds from one vote to another

(viii)  The amount of money given to the shareholders of the company as their gain from the profit

(ix)   Universal acceptance that a business is separated from the owner

(x)   Used to record pages of reference in the books of accounts

 

A. Business entity concept

B. Civil contingencies funds

C. Commission

D. Contra-entry

E. Credit note

F. Dividends

G. Folio column

H. Loss

I. Margin

J. Narration

K.  Statement

L.  Subsidiary books

M. Trade Discount

N. Treasury

O.  Virement

 



SECTION B

3.Mention five types of Government revenue



4.Fill in the gaps in the following table:

S/N

ASSETS

CAPITAL

LIABILITIES

  1.  

Tshs. 2,500,000

Tshs 1,097,000

Tshs………..

  1.  

Tshs…………….

Tshs 10,000,000

Tshs 1,193,700

  1.  

Tshs 3,900,000

Tshs……..

Tshs 1,193, 700

  1.  

Tshs 25,698

Tsh 17,947,800

Tshs…….

  1.  

Tshs…………

Tshs 17,587, 400

Tshs 3,412,600



SECTION C

5. Borakupata Brothers made the following purchases returns during the month of January, 2010.

 Date

 

Jan 5th 2010

Returned to Mandelako:  One bag of maize at Tshs. 30,000.00, not suitable for consumption

Jan 10th 2010

Returned to Godfrey: 2 dozen cooking oil at Tshs. 1,500.00 each, poor quality

Jan 20th 2010

Returned to Kazimoto: 1 dozen blanket at Tshs. 5,000.00 per piece not of size ordered

Jan 25th 2010

Returned to Godfrey:  5 dozen tins of baby milk at Tshs. 600.00 per tin, spoiled in transit

Jan 28th 2010

Returned to Kazimoto: 3 dozens of Bed sheets at Tshs. 2,000.00 per bed sheet, wrong colour

Referring to the table, you are required to open:

(i)Purchases Returns Journal

(ii)Purchases ledger

(iii)General ledger



6.Post the following list of balances into the Trial Balance of Bafanabafana as at 31st December, 2010.

 

 

Salaries and wages

TShs. 7,000,0000

Building .

TShs. 20,000,000

Capital .

TShs.  124,000,000

Furniture

TShs. 30,000,000

Sales

TShs. . 55,000,000

Cash in hand

TShs. 15,000,000

Cash in Bank

TShs. 25,000,000

Closing  Stock

TShs. 35,000,000

Opening Stock

TShs.50,000,000

Discount Received

TShs. 15,000,000

Discount allowed

TShs.  10,000,000

Carriage inwards

TShs. 3,000,000

Debtors

TShs.  12,000,000

Machinary

TShs.  6,000,000

Creditors

TShs.  18,000,000

Carriage Outward

TShs.  4,000,000

Purchase

TShs.  30,000,000



7.The following is a Balance sheet of Maliyatabu traders as at 31 st December 2011.

MALIYATABU TRADERS BALANCE SHEET AS AT 31st DECEMBER, 2011

Equipment

 Tshs..

8,500,000

Loan from Kiziga Trader

TShs.

8,000,000

Cash in Hand

TShs..

120,000

premises

TShs.

26,000,000

Capital

TShs..

29,650,000

creditors

TShs.

780,000

Debtors

TShs..

7000,000

Stock

TShs.

3,650,000

 

 

 

Bank Overdraft

TShs.

540,000

Total

 

38,970,000

 

 

38,970,000

You are required to redraft the above balance sheet correcting any mistakes therein.



FORM TWO BKEEPING MULTIPLE CHOICE 2012

Properties held in the business for a long time are called:

  1.  assets
  2.  current assets
  3. fixed assets
  4.  fixed capital


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

  1.  bank statement
  2. invoice
  3. pay-in-slip
  4.  payment voucher


(iii)     The Government financial year of Tanzania starts from:

A.         1 st January to 31 st December each year

B.        1st January to 31st December the following year

C.        1st July to 31 st December of the following year 

D.         1 st July to 30 th June of the following year



(iv)     Which of the following are sources of Government revenue?

  1. Taxation, Central Bank, Paymaster General
  2. Taxation, Dividends from investments, Ambit of vote
  3. Taxation, Grants, Aids, Interest from Investments 
  4. Taxation, license fees, Receiver of revenue


(v)       Value of closing stock is found by:

  1.  adding opening stock to purchases
  2. deducting purchases from sales
  3. doing stock taking
  4.  looking in stock


(vi)     Customers personal accounts are found in:

  1.  general ledger
  2. private ledger
  3. purchases ledger 
  4.  sales ledger


(vii)    Which of the following is not the objective of book-keeping?

  1.  Business control
  2. Determination of profits
  3. Fair tax assessment
  4.  Obtain job


(viii)The descending order in which current assets should be shown in the Balance sheet is:

  1. cash, bank, debtors, stock 
  2. debtors, stock, bank, cash
  3.  debtors, stock, cash, bank 
  4.  stock, debtors, bank, cash


(ix)Which of the following statements is correct?

  1.  Capital can only come from profit
  2.  Profit does not change capital
  3.  Profit increases capital 
  4.  Profit reduces capital


(x)    With a petty cash imprest in hand of Tshs. 150,000/= a petty cashier who has spent Tshs. 92,000/= will require a reimbursement of: 

  1.  Tshs.
  2.  Tshs.
  3. Tshs. 92,000/D. 
  4. Tshs.50,000


FORM TWO BKEEPING MULTIPLE CHOICE 2011

A book which is used to record minor expenses of the firm is called:

  1. cash book
  2. journal
  3. petty cash book
  4. three column cash book


(ii)       Which of the following is an example of nominal account?

  1. Cash
  2. Machine
  3. Stock
  4. Sundry creditors


(iii)     The exchequer account is under the control of:

  1.  Accounting Officer
  2.  Controller and Auditor General
  3.  Paymaster General
  4. Treasury


(iv)     Which of the following is not used in connection with cheque payments?

  1. customer
  2. drawee
  3. drawer D
  4.  payee


(v)       The following are examples of real account:

  1.  cash and rent
  2. debtors and creditors
  3. machinery and building
  4.  sales and purchases


(vi)     Another name for two column cash book is:

  1.  double column cash book
  2. petty cash book
  3.  single column cash book 
  4.  three column cash book


(vii)    The sale of goods on credit to Kazamoyo amounting to Tshs.

400,000/= should be recorded as:

  1.  debit cash account, credit sales account
  2.  debit Kazamoyo account, credit cash account
  3. debit Kazamoyo account, credit sales account
  4. debit sales account, credit Kazamoyo account


(viii)The excess of sales over cost of goods sold is called:

  1.  gross loss
  2. gross profit
  3.  net loss
  4.  net profit


(ix)    The term "Nugatory expenditure" refers to:

  1.  expenditure incurred on buying
  2. fund into which all government revenue is reserved
  3.  money spent on the purchases of government vehicles
  4. payments made for which the government has received no value


(x)      A credit balance in the cash column of the cash book means:

  1.  more is spent than what has been received
  2. posting error
  3.  some amount is stolen
  4.  totalling error


FORM TWO BKEEPING MULTIPLE CHOICE 2010

Business transaction is classified into:

  1. Two categories
  2. Three categories
  3.  Four categories 
  4.  Five categories


Which of the following is not a book of original entry?

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


(iii)    The purchases of machinery for a business paid by cheque should be debited to:

  1.   bank account, credit machinery account
  2.  cash account, credit machinery account 
  3.  machinery account, credit bank account
  4.  machinery account, credit cash account.


(iv)    The money or money worth put into business by the owner is known as:

  1.  assets
  2. business
  3. capital
  4. investment


(v)      A cheque which is denied payment by the bank is known as:

  1.  bank cheque
  2.  dishonoured cheque
  3.  honoured cheque
  4. uncredited cheque


(vi)    The total of the discount allowed in a cash book is posted to the:

  1.  credit of the discount allowed account
  2.  credit of the discount received account
  3. debit of the discount allowed account
  4. debit of the discount received account


(vii)  Unpresented cheques are those which appear on:

  1.  credit side of bank sheet but not seen on the debit side of cash book.
  2.  credit side of the cash book but not seen on the debit side of bank statement.
  3. debit side of bank sheet but not seen on the credit side of cash book.
  4. debit side of the cash book but not seen on the credit of bank statement.


(viii) The document which gives description of goods bought on credit is:

  1. cash sale
  2. credit note
  3.  invoice
  4.  receipt


(ix)    An alternative name for a purchases journal is:

  1.  cash purchases
  2. purchases day book
  3. sales day book 
  4.  sales ledger


(x)      The credit entry for net profit is on the credit side of the:

  1.  capital account
  2.   drawing account
  3.   profit and loss account 
  4.  trading account.


FORM TWO BKEEPING MULTIPLE CHOICE 2009

Returns inwards deals with goods:

  1.  Purchased on credit
  2.  Returned by the firm to the supplier
  3. Returned to the customer by the firm 
  4. . Returned to the firm by its customer


Cash or goods taken out of the business for private use are known as:

  1.  Balance
  2. Drawings
  3.  Loss
  4.  Profit


(iii)     A document issued to the customer whenever a customer returns goods to the suppler is called.

  1. Credit note
  2. Debit note
  3.  Invoice
  4. Pro-forma invoice


(iv)     Posting is:

  1.  Making statement of money worthiness of a business organization.
  2.  Selling the assets which are easily bought
  3. Sending letters, parcels and order to the post office
  4. The process of transferring the debits and credits items from the journal to the respective accounts in the ledger.


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

  1. Consumable goods
  2. durable goods
  3. expired goods
  4. perishable goods


(vi)     One of the objectives of book keeping is to:

  1. allow fair tax assessment
  2.  avoid payment of tax
  3. get employment
  4.  know how to steal money


(vii)    One of the items which appears in the bank statement but not in the cash book which causes the differences of the balance is called:

  1. credit note
  2.  direct deposit
  3.  uncredited cheque
  4.  unpresented cheque


(viii)The column in the account which shows the page of the ledger is called:

  1. details
  2.   folio
  3. ledger account 
  4. particular


(ix)     What will be the amount of capital from the following items? Premises Tshs. 200,000; Debtors Tshs. 170,000; Stock Tshs. 350,000; Creditors Tshs. 50,000; Loan from Ally Tshs.

220,000

  1.  Tshs. 450,000 
  2. . Tshs. 480,000
  3. Tshs. 505,000 
  4. . Tshs. 540,000


(x)       The total of the bought journal at the end of every month is:

  1.  Credited to the individual Creditors account in Bought Ledger
  2. Credited to the Sundry Creditors account in the Ledger
  3. Debited to the nominal account in the General Ledger
  4.  Debited to the purchases account in the General Ledger


FORM TWO BKEEPING MULTIPLE CHOICE 2008

(i)If the assets of a business amount to Tshs.  and owners capital is Tshs.  how much is the liability of the business? 

  1.  Tshs.
  2. Tshs.
  3.  Tshs. 45,000/
  4.  Tshs.


Katubi bought goods valued Tshs. 60,000/= on credit from Mwambasha. Therefore Mwambasha is a:

  1. customer
  2.  creditor
  3.  debtor
  4.  purchases


(iii)   Given a desired cash float ofTshs. 10,000/ = ,if Tshs. is spent, how much will be reimbursed?

  1. Tshs. 2,800
  2.  Tshs.7,200
  3.  Tshs.7,300
  4.  Tshs.10,000


(iv)    Which of the following is correct?

  1.  Capital can only come from profit
  2. Profit does not change capital
  3. Profit increases capital 
  4.  Profit reduces capital


(v)     An officer who controls Public Money is known as:

  1. Authorized Officer 
  2. Accounting Officer
  3. Paymaster General
  4.  D.  Receiver of Revenue


(vi)    In the Trading Account the Returns inwards should be:

  1.  added to cost of goods sold
  2. added to scale
  3. deducted from purchases
  4.  deducted from sales


(vii)  The arithmetical accuracy of the double entry system of business transactions is checked from the:

  1.  Balance Sheet
  2. Final Accounts
  3.  Income Statements 
  4. Trial Balance


(viii)The sale of goods on credit to Maganga should be recorded in:

                debit                                credit

A.

Cash Account

Sales Account

B.

Magangas Account

Cash Account

C.

Magangas Account

Sales Account

D.

Sales Account

Magangas Account



(ix) Capital and drawings accounts are classified as:

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


(x) Which of the following is not correct?


Assets

Liabilities

Capital
A
 6,540
 1,120 
5,420
B

7,850


1,250


6,600


C

8,200


2,800


5,400


D

9,550


2,800


5,400




FORM TWO BKEEPING MULTIPLE CHOICE 2007

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

  1.  profit
  2.  loss
  3. drawings 
  4.  assets


Book-keeping is mainly concerned with:

  1. the arranging of books in alphabetical order
  2.  recording of financial data relating to business operations
  3.  creating employment to people 
  4.  providing loans to people


(iii)      The account has two sides which are:

  1.  inside and outside
  2. opening side and balancing side
  3.  debit side and credit side
  4. closing side and bankers side


(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 statement used to check the correctness of the cash book balance and bank statement balance is known as:

  1.  trial balance statement
  2.  balance sheet statement
  3. bank reconciliation statement
  4.  assets and capital statement


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

  1. fixed capital  
  2. fixed assets
  3. assets 
  4.  current assets


(vii)    A cheque drawn 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.  a standing order 
  2. dishonoured cheque
  3.  credit transfer 
  4.  an unpresented cheque


(viii)The Government financial year of Tanzania starts from:

  1.    1 st January to 31 st December each year
  2.  1 st July to 30 th June the following year
  3.   1st January to 31 st December the following year 
  4.  1 st July to 31st December of the following year


(ix)    The following is not a source of government revenue:

  1.  net salaries   
  2. taxes
  3. licenses 
  4.  loans


(x)      The proper document used for depositing money in the bank is known as:

  1. payment voucher 
  2.  pay in slip
  3.  invoice 
  4.  bank statement


FORM TWO BKEEPING MULTIPLE CHOICE 2005

This is one of the objectives of book-keeping;

  1. To check the arithmetic accuracy in recording the account
  2. To show the debtors and creditors
  3.  Determination of profit 
  4.  To sell the goods


Business entity concept is:

  1. The owner of business has all control of the business
  2. Universal acceptance that a business is separated from the Owner(s)
  3.  Business accounts are kept together with those of the Owner
  4.  Debts of the owner(s) are those of the business


(iii)    The descending order in which current assets should be shown in the balance sheet is:

  1.  A stock, Debtors, Bank, Cash
  2.  Debtors, Stock, Bank, Cash 
  3.   Cash, Bank, Debtors, Cash
  4. Debtors, Stock, Cash, Bank


(iv)    The term "Nugatory expenditure" refers to:

  1. Fund into which all Government revenue is reserved
  2.  Expenditure for which the Government has received no value
  3.  Money to spend on the purchases of Government vehicles
  4. Expenditure incurred on buying


(v)      Which of the following account has a credit balance in the general ledger?

  1. Carriage inwards 
  2.  Carriage outwards
  3. Returns inwards
  4. Returns outwards


The main books and those in which the Double entry system of book keeping is kept are generally known as:

  1. Principle books
  2. The ledger books
  3. The cash book
  4.  The general Ledger


(vii)  The document which shows the firms or the customers amount as it stands at the bank:

  1.  Bank Reconciliation Statement
  2.  Bank statement
  3.  Bank balances  
  4. Customers bank balance


(viii)The periodical total of the purchases day book is transferred to the:

  1.  Dept side of the Purchase Account
  2. Credit side ofthe cash book
  3. Debit side of the bank account
  4.  Credit side of the personal account of suppliers


(ix)    The cost of putting goods into a saleable condition should be charged to:

  1.  Profit and Loss Account
  2. Trading Account
  3.  Balance sheet
  4. None of the above


(x)      When a petty cash book is kept there will be;

  1. The same number of entries in the general ledger
  2.  Fewer entries made in the general ledger
  3. More entries made in the general ledger
  4. No entries made at all in the general ledger


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