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.
Instructions
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?
2.For each of the items (i) - (v), match the descriptions of the different types of capital in Column A with their corresponding names in Column B by writing the letter of the correct response beside the item number in the answer booklet provided.
COLUMN A | COLUMN B |
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SECTION B (40 Marks)
Answer all questions in this section.
3. Briefly explain the following accounting concepts:
4. A partnership may be formed through an oral or a written legal agreement among the partners. Suppose there is no written partnership agreement, explain briefly five provisions of the Partnership Act that would govern the operations of the partnership.
View Ans5.The following is the Cash Book of Mr Nguzo as at 31 st August 2016.
DR Cash Book CR
Date | Details | Cash | bank | Date | Details | Cash | Bank |
1/8/2016 | Capital | 94,000 |
| 2/8/2016 | Bank | 90,000 |
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2/8/2016 | Cash |
| 90,000 | 5/8/2016 | Wages |
| 8,000 |
29/8/2016 | Sales | 22,180 |
| 7/8/2016 | Purchases | 2,362 |
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| 17/8/2016 | Motor van |
| 69,000 |
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| 28/8/2016 | Firelighter |
| 2,800 |
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| 30/8/2016 | Rent | 3,818 |
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| Balance c/d | 20,000 | 10,200 |
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| 116,180 | 90,000 |
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| 116,180 | 90,000 |
1/9/2016 |
| 20,000 | 10,200 |
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Use the principle of double entry to post the entries from the cash book to their respective ledger accounts and balance off the accounts at 3 1 st August 2016.
View Ans6. Rasheeda is a treasurer of the Down Town Sports Club; she has not kept proper book keeping records but has kept notes in a diary form of the Clubs transactions for the year ended 31 st December 2018. She is able to give you the following list of assets and liabilities of the Club at 3 1 SDecember 2018:
Details 31 st December 2018
Motor van | 250,000 |
Fixtures | 80,000 |
Stock | 190,000 |
Debtors | 310,ooo |
Bank | 375,000 |
Cash | 15,000 |
Creditors | 90,000 |
Owing: Salaries | 9,500 |
Loan from bank | 100,000 |
Prepaid insurance | 6,000 |
Buildings | 125,000 |
Equipment | 50,000 |
Prepaid income | 4,000 |
Additional information:
The Clubs accumulated fund at I st January 2018 amounted to TZS 954, 100. Drawings during the year amounted to TZS 260,000.
Using the information provided prepare:
SECTION C (40 Marks)
Answer two (2) questions from this section.
7. On I st September 2018 Viera Nick, an entrepreneur and cafe manager had the following financial position relating to her business activities:
TZS
Balance at Bank | 200,000 |
Inventory | 150,000 |
Cash in hand Accounts receivable: | 120,000 |
Mkombozi | 500,000 |
Ujamaa | 180,000 |
Uzalendo Accounts payable: | 50,000 |
Navona | 900,000 |
Bhoke | 25,000 |
During September 2018, the following events occurred:
Open the bank Account, Cash Account, Discounts Allowed Account, Discounts Received Account, Bad Debts Account, the customers Accounts in the sales ledger and the suppliers Accounts in the purchases ledger, record the given information and balance off the accounts at 30th September, 2018.
View Ans8. Enter the following transactions in the Three Column Cash Book of Mrs Pamba, balance it off at the end of April 2017 and show the discounts accounts in the general ledger:
April 1 Mrs Pamba had the following balances in her cash book; cash in hand TZS 62,000 and at bank TZS 714,200.
2 The following debtors paid their accounts by cheque, in each case deducting 5% cash discount: G. George TZS 26,000, P. Peter TZS 32,000, T. Tabu TZS 42,000 (All amounts are pre discounts).
4 Mrs Pamba paid rates by cheque TZS 43,000.
6 Mrs Pamba received a loan from F. Fabian TZS 500,000 by cheque.
8 Mrs Pamba paid the following accounts by cheque and in each case deducting 3% cash discount: R. Robert TZS 72,000, G. Green TZS 96,000, L. Lamona TZS 160,000 (All amounts are pre discounts)
10 Mrs Pamba paid general expenses in cash TZS 8,100.
12 J. Juma a debtor paid his account ofTZS 9,000 by cheque TZS 8,800, after deducting TZS 200 cash discount.
15 Mrs Pamba paid salaries in cash TZS 58,000.
21 Mrs Pamba withdrew cash from bank TZS 40,000 for business use.
24 Mrs Pamba withdrew cash for personal use TZS 20,000.
25 Mrs Pamba bought motor van paying by cheque TZS 72,000.
30 Mrs Pamba received commission by cheque TZS 12,000.
View Ans9. The following is a trial balance of Mr Mashamba for the year ended 31st December 2018:
Mr Mashambas Trial Balance as at 31 December 2018
| DR | CR |
Inventory of raw materials 1/1/2018 Inventory of finished goods 1/1/2018 Inventory of work in progress 1/1/2018 wages (Direct 3,600,000 factory indirect TZS 2,900,000) Royalties Carriage inwards on raw materials Purchase of raw materials Machinery and Plant (cost 5,600,000) Office Fixtures (Cost TZS 400,000) Other factory expenses Lighting and heating Factory power and fuel Salaries Sales expenses Commission on sales Rent Insurance General administration expenses Office Rates Discount allowed Carriage outwards Sales Account receivable & Account payable Cash at Bank Cash in hand Drawings Capital as at 1/1/2018 | 420,000 778,000 270,000 6,500,000 140,000 70,000 7,400,000 4,600,000 240,000 620,000 150,000 274,000 880,000 600,000 230,000 240,000 84,000 268,000 46,000 96,000 1 18,000 2,846,000 336,000 30,000 1,200,000 | 20,000,000 1,280,000 7,156,000 |
28,436,000 | 28,436,000 |
Notes at 31/12/2018:
(i)Inventory of raw materials TZS 480,000, inventory of finished goods TZS 800,000 and inventory of work in progress TZS 300,000.
(ii) Lighting, rent and insurance are to be appoftioned as follows: Factory 5/6, administration 1/6.
(iii) Depreciation on machinery and plant and office fixtures is 10% per annum on cost.
(iv) Net Profit was TZS. 1,796,000.
Use the given information to prepare the Statement of Manufacturing Cost for the year ending 31 st December 2018 and the Statement of Financial Position as at 31st December 2018.
View Ans