FORM FOUR BKEEPING NECTA 2017

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

  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.
Choose Answer :


(ii) Sales invoices are first entered in the

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


p class="MsoNormal" style="margin-top: 0in; margin-right: 2.5pt; margin-bottom: 0.2pt;">(iii) An authority letter issued by the Accounting Officer or his deputy covering the authority for specific expenditure is called

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


(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
Choose Answer :


(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
Choose Answer :


(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.
Choose Answer :


(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.
Choose Answer :


(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. 
Choose Answer :


(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
Choose Answer :


(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
Choose Answer :


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.

  1. Floating capital
  2. Capital expenditure
  3. Current assets
  4. Working capital
  5. Fixed assets
  6. Current liabilities
  7. Working capital ratio
  8. Capital
  9. Liquid capital
  10. Liquid capital ratio
  11. Capital owned
  12. Capital employed
  13. Capital receipts
  14. Long-term liabilities
  15. Profit percentage on capital invested
View Ans


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 Ans


4. (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 Ans


SECTION 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 Ans


7.(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
View Ans


Download Learning
Hub App

For Call,Sms&WhatsApp: 255769929722 / 255754805256

GO TO NECTA EXAMS