FORM TWO BKEEPING NECTA 2014

Which of the following statements is incorrect?

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


Which of the following is a liability?

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


(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
Choose Answer :


(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.
Choose Answer :


(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.
Choose Answer :


(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
Choose Answer :


(vii)    Net profit is calculated in the:

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


(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
Choose Answer :


(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
Choose Answer :


(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
Choose Answer :


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

Choose Answer :


(ii)Which of the following is a liability?

A.Machinery

B.Accounts payable for goods

C.Motor vehicles 

D. Cash at bank

Choose Answer :


(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

Choose Answer :


(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.

Choose Answer :


(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.

Choose Answer :


(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

Choose Answer :


(vii)Net profit is calculated in the:

A.trading account

B.trial balance

C.balance sheet

D.profit and loss account

Choose Answer :


(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

Choose Answer :


(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

Choose Answer :


(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

Choose Answer :


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
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3.(a) Mention three classes of accounts. 

(b) Name two sides of account.

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

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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

View Ans


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

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

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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

 

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3.Mention five sources of government funds.

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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

View Ans


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

 

 


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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


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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.

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