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 Tuesday, 12th November 2019 p.m.
SECTION A (20 Marks)
Answer all questions in this section.
1. For each of the items (i) - (xv), choose the correct answer from among the given alternatives and write its letter beside the item number in the answer booklet provided.
(i) When a new partner is admitted to a partnership business, any decrease in value of an asset resulting from valuation is debited to
(ii) From the following categories of errors, identify the category of errors which affect only one account
(iii) Which of the following books of prime entry is used to record a list of goods sold on credit?
(iv) Which of the following accounting errors are corrected through the suspense account?
(v) The term depreciation would best be described as the
(vi)A business had an opening and closing capital balances of TZS 57,000 and TZS 64,300 respectively in a certain financial year. The drawings during the same year amounted to TZS 11,800. What was the amount of profit made by the business during that year?
(vii) What should be the accounting entry for expenses incurred by a consignor in his books of accounts?
(viii) Under which of the following circumstances can an auditor issue a qualified audit opinion?
(ix) Given balance as per cash book TZS 6,500, uncredited cheque TZS 1,500, bank charges not yet entered in the cash book TZS 500 and credit transfer received by bank but not yet entered in the cash book TZS 1,000. What will the balance as per bank statement?
(x) When preparing a trial balance, what would result if sales made to Ramima TZS 57,000 is wrongly debited to Ramimas account as TZS. 75 000?
(xi) What is the amount of stock reserve on a closing stock of TZS 6000 in department B if goods are transferred from department A to department B at a price which includes a profit of 25% on cost?
(xii) Government accounting is important for countries like Tanzania because it
(xiii) The suppliers personal accounts are kept in the
(xiv) A credit balance in the income and expenditure account indicates the excess of
(xv) Which of the following depreciation methods uses the reduced value to compute the depreciation of a non-current asset?
(i) Which of the following should be entered in the Journal?
(ii) Errors are corrected through the journal because
(iii) If the totals of a trial balance do not agree, the difference must be entered in
(iv) Given the opening accounts receivable of TZS 115,000, sales TZS 480,000 and receipts from debtors TZS 450,000, the closing accounts receivable total should be
(v) In a sales ledger control account the bad debts written off should be shown as
(vi) Prime cost is obtained as a result of
(vii) X and Y are partners in a partnership business sharing profit and losses at the ratio of 1:3 respectively. Their net profit at 31/12/2017 was TZS 500,000, how much profit will each partner earn?
(viii) If someone owns a grocery store, which of the following is a capital expenditure?
(ix) Which of the following is a liability?
(x) Which of the following is an example of recurrent expenditure?
(i) A credit balance of sh. 20,000 on the cash column of the cash book would mean that
(ii) Sales invoices are first entered in the
(iii) An authority letter issued by the Accounting Officer or his deputy covering the authority for specific expenditure is called
(iv) Which of the following are the examples of revenue expenditure?
(v) Which of the following is treated as current assets in the preparation of statement of financial position?
(vi) In the trial balance the balance on the provision for depreciation account is
(vii) When the financial statements are prepared, the bad debts account is closed by being transferred to
(viii) At the beginning of accounting year Y. club has Tsh. 14,000 as non-current assets, Tsh. 5,000 as current assets and Tsh. 5,000 liabilities. What would be its opening accumulated fund?
(ix) A cheque which is not accepted for payment by the bank due to insufficient fund in the drawer’s bank account is referred to as
(x) What is the effect of Tsh. 50,000 being added to purchases instead of being added to a non-current asset?
(i) A cash discount is described as a reduction in the sum to be paid if the payment is made
(ii) What is meant by the term salvage value?
(iii) Suppliers’ personal accounts are found in the
(iv) The total of the Returns Outwards Journal is transferred to the
(v) If an accumulated provision for depreciation account is in the use, the entries for the year’s depreciation would be
(vi) In the trading account, the wages expenses should be
(vii) A receipts and payments account does not show
(viii) Which of these errors would be disclosed by the trial balance?
(ix) Given last year’s capital was sh. 745,000, closing capital is sh. 462,000 and drawings of sh. 134,000, then
(x) The sales day book does not contain
(i) Which of the following will happen if sh. 7,500 was added to rent instead of being added to fixed assets?
(ii) In the trading account, the sales returns should be
(iii) When income statements are prepared, the bad debts account is closed by a transfer to the
(iv) If current account is maintained then the partners’ share of profit must be
(v) The value of closing inventories is found by
(vi) Which of these statements is incorrect?
(vii) A bank reconciliation statement is a statement
(viii) What is meant by the term revenue expenditure?
(ix) The recommended method of departmental account is to
(x) If the two totals of a trial balance do not agree, the difference must be entered in;
(i) Which of the following should be charged in the Profit and Loss Account?
(ii) Manufacturing account is used to calculate
(iii) When there is no partnership agreement then profits and losses must be shared
(v) Customers’ personal accounts are found in
(vi) Which of the following should be entered in the Journal?
(vii) If drawing account is not maintained, interest on drawing must be
(viii) An allowance for doubtful debts is created
(ix) Depreciation can be described as the
(x) If it is required to maintain fluctuating capitals then the partners’ share of profits must be
(i) A statement showing assets, liabilities and capital of a business undertakings in a particular trading period is called a
A trial balance B ledger C balance sheet
D sales day book E cash book.
(ii) Which of the following is the main book of account?
A The cash book B The Journal
C The petty cash book D The Ledger
E The Journal Proper.
(iii) The correct method of calculating cost of goods sold is
A closing stock + purchases opening stock
B opening stock + closing stock purchases
C closing stock + purchases + opening stock
D opening stock purchases + closing stock
E opening stock + purchases closing stock.
(iv) Which of the following statement describes noncurrent assets?
A Items bought to be used in the business.
B Items which will not wear out quickly.
C Expensive items bought for the business.
D Items having a long life and bought for resale.
E Items having a long life and not bought for resale.
(v) Which of the following is NOT an asset?
B Loan from K Hamis
C Accounts receivable
D Cash balance
(vi) The credit entry for net profit is done in the
(vii) The total of the purchases journal is entered in the
A debit side of purchases day book
B credit side of the purchases account
C debit side of the purchases account
D debit side of the sales account
E credit side of the sales.
(viii) Which of the following expression is correct?
A Assets capital = liabilities
B Liabilities capital = assets
C Liabilities = assets = capital
D Assets + liabilities = capital
E Capital + assets = liabilities
(ix) The cost of putting goods into a saleable condition should be charged to
A trading account
B sales account
C profit and loss account
D receipt and payment account
E income and expenditure account
(x) Which of the following describes the meaning of purchases?
A Goods bought for cash
B Goods bought on credit
C Goods bought for resale
D Goods bought and paid for
E Goods bought and stored.
(i) If opening capital is 412,500/=, closing capital is 283,750/= and drawings is 82,500/=, then:
(ii) A receipt and payment account is used to
(iii) The correct method of calculating cost of goods sold is
(iv) If we take goods for personal use we should debit
(v) A cheque paid by the business owner that is in possession of payee but not yet deposited with the bank is called
(vi) Given a cash float of 200,000/=, if 146,000/= is spent in the period, how much will be reimbursed at the end of that period?
(vii) If trial balance totals do not agree, the difference must be entered in
(viii) Given the cost of goods sold is 320,000/= and margin of 20%, then the sales figure is
(ix) Discount received is
(x) When Mussa makes out a cheque for 50,000/= and sends it to Joseph, then Mussa is known as
1. (i) Which of the following is not a factor that may cause capital to change?
A Additional investment
(ii) The sum of fixed assets and working capital of a business is called
A capital owned
B capital employed
C circulating capital
D working capital
E borrowed capital.
(iii) The trial balance totals should agree because
A it is extracted at the year end
B for every debit there must be a corresponding credit
C it is a list of balances
D errors in balancing the ledger accounts are found out
E it is an account.
(iv) When John writes a cheque and sends it to James then James is
(v) A credit balance of 500,000/= in the cash column of the cash book means
A we have spent more than we have received
B we have spent less than we have received
C the bookkeeper has stolen 500,000/=
D we have 500,000/= cash in hand
E the bookkeeper has made a mistake.
(vi) At the end of the financial year, bad debts account is closed by a transfer to the
A profit and loss account
B balance sheet
C trading account
D account of expected bad debts
E allowance for doubtful debts account.
(vii) Credit notes issued by a firm will be entered in its
A purchases returns account
B sales returns account
C sales account
D sales returns journal
E purchases returns journal.
(viii) Discounts allowed are
A deducted by the business when it pays cash
B deducted by the business when it receives cash
C given by the business when it sells goods on credit
D received by the business when it buys in bulk
E given to those who buy larger quantities from the business.
(ix) Which among the following is not a source document?
A Remittance advice notes
B Payment vouchers
C Cash sales slip
D Sales journal
E Debit notes.
(x) A cheque issued but not yet passed through the banking system is called:
A postdated cheque
B dishonoured cheque
C stale cheque
D unpresented cheque
E uncredited cheque.