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.

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 1^st 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 31^st  December 2017. Use the information provided to prepare his statement of Financial Position as at 31^st 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