THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

062 BOOK KEEPING

(For Both School and Private Candidates)

Time: 3 Hours Year: 2023

Instructions

1. This paper consists of sections A, B and C with a total of nine (9) questions.
2. Answer all questions in sections A, B and C.
3. Section A carries fifteen (15) marks, section B carries forty (40) marks and C carries forty five (45) marks each.
4. Non programmable calculators may be used.
5. Communication devices and any unauthorised materials are not allowed in the examination room.
6. Write your Examination Number on every page of your answer booklet(5).

SECTION A (15 Marks)
Answer all questions in this section.

1. For each of the items (i) - (x) choose the correct answer front the given alternatives and write its letter beside the item number in the answer booklet provided.

(i) What is meant by the term depreciation?

1. The amount spent to buy fixed assets
2. The salvage value of fixed assets
3. The cost of fixed assets used up by the firm
4. The amount of money spent in replacing assets
5. The amount of money invested into business

(ii) What is meant by the term working capital?

1. Capital less drawings
2. Total of fixed assets less current assets
3. Amount of capital invested by the owner of business
4. The excess of current assets over current liabilities
5. The excess of current liabilities over current assets

(iii) A budget can be considered as

1. a plan expressed in monetary value over unspecified period of time
2. a way of deciding development over a specified period.
3. process of planning business in a short period of time.
4. a plan in monetary terms over a specified period of time.
5. a design to help the government in longer period of time.

(iv) What is the best method of apportioning expenses in departmental accounts?

1. To allocate expenses in proportion to sales.
2. To charge controllable costs against departments.
3. To charge all expenses between the departments.
4. To allocate expenses in proportion to purchases.
5. To allocate revenue and expenses.

(v) Where is the total of discounts allowed column in the cash book poster;?

1. To the debit of discounts allowed account
2. To the debit of discounts received account
3. To the credit of discounts allowed account
4. To the credit of discounts received account
5. To the credit of the bank account

(vi) Which attributes make Information provided in the financial statements useful to the users of accounting information?

1. Materiality. relevance and tolerance
2. Subjectivity. relevance and tolerance
3. Tolerance, subjectivity and reliability
4. Reliability, comparability and relevance
5. Subjectivity, reliability and tolerance

(vii) Which one of the following are nominal accounts?

1. Premises and Rent received
2. Wages and Machinery
3. Debtors and Stationery
4. Insurance and Rates
5. Sales and Cash at bank

(viii) How would you treat the distribution of profits among partners if they decide to maintain a fluctuating capital account in their partnership books?

1. Credit to partners' current accounts
2. Debit to partners' current accounts
3. Credit to partners' drawings accounts
4. Debit to partners' capital accounts
5. Credit to partners' capital accounts

(ix) Given opening capital of TZS 16,500, closing capital of TZS 11,350, and drawings for the year of TZS 3,300; what would be the profit or loss for the year?

1. Loss for the year is TZS 18,500
2. Loss for the year is TZS 1,850
3. Profit for the year is TZS 1,850
4. Loss for the year is TZS 8,450
5. Profit for the year is TZS 8,450

(x) How would you record the expenses for goods sent to a consignee if the consignor pays all the expenses?

1. Dr Consignment account, Cr goods sent on consignment account
2. Dr Consignment account, Cr consignor account
3. Dr Consignment account, Cr consignee account
4. Dr Cash book, Cr consignment account
5. Dr Consignment account, Cr cash book