THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL

CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

062            BOOK KEEPING

(For Both School and Private Candidates)

Time: 3 Hours                         Friday, 03^rdNovember 2017 p.m

Instructions

1. This paper consists of sections A, B and C with a total of seven (7) questions.
2. Answer all questions.
3. Calculators, cellular phones and any unauthorised materials are not allowed in the examination room.
4. Write your Examination Number on every page of your answer booklet(s). 

          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 its letter beside the item number in the answer booklet provided.

(i)  A credit balance of sh. 20,000 on the cash column of the cash book would mean that 

1. the business owner has Tsh. 20,000 cash in hand.
2. the bookkeeper has drawn Tsh. 20,000 in his cash book.
3. the shop keeper lost Tshs. 20,000 from the business.
4. the shop keeper sold goods on credit for Tsh. 20,000.
5. the business owner spent Tsh. 20,000 more than he/she has received.

(ii) Sales invoices are first entered in the

1. cash book 
2. purchases journal 
3. sales account 
4. sales journal 
5. purchases account.

1. ambit of the vote 
2. warrant of funds 
3. virement
4. reallocation warrant
5. warrant holder. 

(iv) Which of the following are the examples of revenue expenditure? 

1. Purchases of goods and payment for electricity bill in cash 
2. Repair of van and petrol costs for van
3. Buying machinery and paying for installation costs
4. Electricity costs of using machinery and buying van
5. Buying van and petrol costs for van

(v) Which of the following is treated as current assets in the preparation of statement of financial position?

1. Unearned revenue
2. Accrued expenses
3. Accrued revenue
4. Depreciation expenses
5. Accumulated depreciation

(vi) In the trial balance the balance on the provision for depreciation account is 

1. not shown, as it is part of depreciation.
2. shown as a debit items.
3.  shown as a credit items.
4. shown in both sides of the trial balance.
5. sometimes shown as a credit, sometimes as a debit.

(vii) When the financial statements are prepared, the bad debts account is closed by being transferred to

1. balance sheet.
2. profit and loss account. 
3. trading account. 
4. provision for doubtful debts account.
5. profit and loss appropriation account.

(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?

1. Tsh. 4,000. 
2. Tsh. 14,000.
3. Tsh. 5,000. 
4. Tsh. 24,000. 
5. Tsh. 12,000. 

(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

1. dishonoured cheque
2. unpresented cheque
3. uncredited cheque
4. unrecorded cheque
5. open cheque

(x) What is the effect of Tsh. 50,000 being added to purchases instead of being added to a non-current asset?

1. Net profit would be understated
2. Net profit would be overstated
3. Net profit would not be affected
4. Gross profit would be effected
5. Both gross and net profits would be understated

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

SECTION B (20 Marks)

Answer all questions in this section.

 3.(a) State five advantages of using books of original entry.

(b) Briefly explain five types of errors which do not affect the agreement of a trial balance. 

4. (a) From the following given information, find out the amount to be transferred to Profit or Loss Account by using Rent received Account.

A total sh. 9,870,000 cash was received during the year.

(b)                Briefly explain five benefits of bank reconciliation statement. 

SECTION C (60 Marks) 

Answer all questions in this section.

5.    On 1^st January, 2015, F. Wood had the following assets and liabilities:

His transaction during the month of January were as follows:

January   2    Withdrew sh. 200,000 from bank for office use

 2    Purchased goods from J. Polo sh. 250,000 on credit

 4    Bought office stationery sh. 36,000 in cash

7 Received cheque sh. 940,000 from R. Nundu in full settlement less sh. 20,000 cash discount

12 Sold goods to W. Kamau sh. 1,400,000 on credit

14     Paid salaries sh. 80,000 in cash

15     Paid S. Matoke sh. 600,000 by cheque on account

16     Returned goods worth sh. 30,000 to J. Polo and received a credit note

20 Bought office equipment sh. 145,000 on credit from Patel Brothers

23 Sold all goods on hand receiving sh. 1,250,000 cash and sh. 5,000,000 by cheque

27     Paid Patel Brothers sh. 130,000 in cash

28     Withdrew sh. 370,000 from the bank for personal use

29     Paid rent sh. 160,000 in cash and salaries sh. 180,000 by cheque

From the above information:

(a)Find out capital as 1^st  January, 2015 by using journal proper.

(b) Open debtors and creditors accounts.

(c) Prepare cash and bank accounts.

6. The following details relates to Chituhuma Charitable Club:

Receipts and payments Account for the year ending 31^st  December, 2015

As a newly appointed club treasurer prepare for the club members the following:

(i) Statement of Affairs as at 1^st January, 2015 

(ii) Bar Trading account for year ending 31^st December, 2015      

(iii) Income and Expenditure account for year ending 31^st  December, 2015.

7.(a) Sinahamu Tena traders bought a motor van on 1^st January, 2014 at sh. 1,800,000 estimated to last five years after which it have a scrap value of sh. 300,000. The van was sold on 31^st  December, 2016 at Tsh. 1,000,000 and the payment made by cheque.

From the above information prepare:

(i) Motor van account

(ii) Provision for depreciation on motor van account 

(iii) Disposal of motor van account.

 (b) From the following particulars extracted from the books of a trader, prepare sales ledger and purchases ledger control accounts for the month ended 31^st  December, 2015.