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, 03rdNovember 2017 p.m
Instructions
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
(ii) Sales invoices are first entered in the
(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?
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.
COLUMN A | COLUMN B |
(i) The net worth of the business to the owner of the business. (ii)The property purchased in order to be retained in the business. (iii)The assets which can be converted into cash within a relatively short period. (iv)The sum of all current assets. (v)The difference between total current assets and stock. (vi)The current assets less stock over current liabilities. (vii)The total value of assets less total debtors. (viii)The amount of money used for the day to day running of the business (ix)Total current assets over total current liabilities. (x)The debts which must be paid promptly preferably within one year. |
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SECTION B (20 Marks)
Answer all questions in this section.
3.(a) State five advantages of using books of original entry.
View Ans(b) Briefly explain five types of errors which do not affect the agreement of a trial balance.
View Ans4. (a) From the following given information, find out the amount to be transferred to Profit or Loss Account by using Rent received Account.
1st Jan. 2015 Sh. | 31st Dec. 2015 Sh. | |
Rent received outstanding | 420,000 | 320,000 |
Rent received in advance | 550,000 | 120,000 |
A total sh. 9,870,000 cash was received during the year.
View Ans(b) Briefly explain five benefits of bank reconciliation statement.
View AnsSECTION C (60 Marks)
Answer all questions in this section.
5. On 1st January, 2015, F. Wood had the following assets and liabilities:
Sh | |
Cash at bank | 1,400,000 |
Stock | 4,000,000 |
Debtors: | |
W. Kamau | 1,500,000 |
R. Nundu | 960,000 |
Creditors: | |
J. Polo | 1,300,000 |
S. Matoke | 850,000 |
Office equipment | 420,000 |
Motor van | 3,200,000 |
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 1st January, 2015 by using journal proper.
(b) Open debtors and creditors accounts.
(c) Prepare cash and bank accounts.
View Ans
6. The following details relates to Chituhuma Charitable Club:
01.01.2015 | 31.12.2015 | |
Premise | 450,000 | 360,000 |
Club furniture | 67,500 | 60,750 |
Sports equipment | 45,000 | 57,600 |
Barman’s outstanding wages | 2,700 | 3,375 |
Subscriptions outstanding | 4,050 | 3,150 |
Subscription received in advance | 1,800 | 1,080 |
Repair to sports equipment, bill due | 5,400 | 3,870 |
Refreshment stock | 13,500 | 8,775 |
Insurance prepaid | 720 | 360 |
Cash in hand | 15,300 | 21,600 |
Bank overdraft | 25,560 | 24,030 |
Refreshment creditors | 19,440 | 8,640 |
Bar debtors | 9,000 | 11,250 |
Receipts and payments Account for the year ending 31st December, 2015
Details | Amount | Details | Amount |
Cash in hand b/f Subscriptions Bar and restaurant receipts Bank balance c/f | 15,300 225,000 177,300 24,030
441,630 | Bank balance b/f Stationery and printing Electricit Wages Insurance Sports equipment Repair to sports equipment Telephone and postage Refreshment General expenses Advertising Cash in hand c/f | 22,560 77,625 10,395 105,660 18,000 27,000 33,750 7,470 90,000 15,750 8,820 21,600 441,630 |
As a newly appointed club treasurer prepare for the club members the following:
(i) Statement of Affairs as at 1st January, 2015
(ii) Bar Trading account for year ending 31st December, 2015
(iii) Income and Expenditure account for year ending 31st December, 2015.
View Ans7.(a) Sinahamu Tena traders bought a motor van on 1st 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 31st 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 31st December, 2015.
Balance on 1st January, 2015: | Sh. |
Sales ledger | |
- cash | 356,000 |
- credit | 78,000 |
Purchases ledger | |
- cash | 424,440 |
- credit | 86,000 |
Transactions during the year: | |
Sales on credit | 9,548,000 |
Purchases on credit | 8,472,000 |
Return inwards | 245,000 |
Returns outwards | 349,000 |
Cheques received from customers | 7,242,000 |
Cheques paid to suppliers | 6,940,000 |
Cash paid to suppliers | 94,000 |
Cash received from customers | 104,000 |
Bad debts written-off | 8,000 |
Discount allowed to customers | 69,000 |
Discount received from suppliers | 76,000 |
Credit purchases set off against credit sales | 254,000 |
Balance on 31st December, 2015: | |
Sales ledger - credit balance | 89,000 |
Purchases ledger - debit balance | 92,000 |