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 Year: 2021
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) What is the main reason for admitting a new partner in partnership business?
(ii) Which item would appear under non-current liabilities in the statement of financial position?
(iii) How can a Book Keeper use a Trial Balance?
(iv) During the month of January, a petty cashier was provided with an opening cash float of TZS. 70,000. However, at the end of the same month the closing cash float balance was 15,900. How much should be reimbursed to the cashier at the,end of the month?
(v) Which of the following errors would be disclosed by the Trial Balance?
(vi) What is the purpose of the provision for doubtful debts account in the business?
(vii) Amani business had an opuning balance of TZS 12,.500 fnr creditors at the beginning of the year and the closing creditors balances of TZS 21,000 at the year end. During the year, the payment made to creditors amounted to TZS 16,000. Calculate the amount of purchases during the year.
(viii) A business has the cost of goods sold worth TZS 150,000 and the mark up of 40%. Calculate the amount of sales for the business.
(ix) How would you record the commission due to consignee in the books of the consignee?
(x) A customer buys 100 items of TZS 5,000 each and has been given a 25% trade discount if he pays within 30 days. What amount would he pay within the discounting period?
(xi) How is the capital for a non-profit making organization described?
(xii) How could a purchase of a non-current asset by cheque affect the balance sheet?
(xiii) Costs incurred for machine repairs in accounting for departmental businesses is appropriately apportioned according to
(xiv) How are the records maintained by accounting officers for proper control of expenditure of public funds against provision of funds called?
(xv) Which categories of errors represent errors which do not affect the Trial Balance agreement?
4. Suppose you are an independent auditor who examines firms' accounting records and financial statements, briefly describe five types of audits.
View Ans5. On 1st January 2015 Mikuyu Motors Company Ltd purchased Motor Lorry worth TZS 12,000,000. The company used the asset for three years. On 31st December 2017 the lorry was sold for TZS 3,000,000. It is the policy of the company to compute depreciation using straight line method.
Using the information provided, prepare the Motor Lorry and Provision for Depreciation on Motor Lorry Account for the three years ending 31st December 2015, 2016 and 2017.
View Ans6. The following jam illation was extracted from the records of Waero Ltd for the month of August 2017. Use the information provided to prepare the Sales Ledger Control Account of Waero Ltd. For The Month Of August 2017.
At August 1 Sales Ledger debt balance Sales Ledger credit balance | TZS 381,600 2,200 |
Transactions for the month: | |
Cash received | 10,400 |
cheques received | 623,900 |
Sales | 709,000 |
Bad debts written off | 30,600 |
Discounts allowed | 29,800 |
Returns inwards | 66,400 |
Cash refunded to a customer who had over paid his account | 3,700 |
Dishonoured cheques | 2,900 |
Interest charged on customers over due debts | 5,000 |
Carriage charged to debtors | 6,400 |
Set off against purchases ledger | 14,300 |
At August 31: Sales ledger debit balance Sales ledger credit balance | 335,000 4,000 |
SECTION C (40 Marks)
Answer two (2) questions from this section.
7. (a) Bora Shoes Ltd is a company which manufactures shoes. The following information was extracted from the company's books for the year ending 31st December 2019:
Details | TZS |
Purchase of raw materials | 800,000 |
Inventory of raw materials on Is' January 2019 | 400,000 |
Returns of raw materials to supplier | 350,000 |
Plant and machinery depreciation | 52,000 |
Inventory of raw materials on 31St December 2019 | 50,000 |
Rent | 944,000 |
Rates | 865,000 |
Insurance | 3,192,000 |
Water and lighting | 8,3000,000 |
Wages and salaries | 10,184,000 |
Direct labour | 6,436,000 |
Direct expenses | 440,000 |
Power and heat | 1,163,000 |
Factory maintenance | 511,200 |
Work in progress on 31st December 2019 | 963,400 |
Plant repairs | 96,600 |
Internal transport expenses (factory) | 175,000 |
Carriage on raw materials | 195,000 |
Lubricants and fuel | 512,000 |
Additional information:
Use the information provided to prepare the Statement of Manufacturing Cost for the year ending 31st December 2019.
View Ans(b) From the following information of Monalisa Furniture shop, prepare the Bank and Cash Accounts and balance off the accounts at 30th April 2017.
April 1 Started business with capital in cash TZS 200,000.
2 Paid rent by cash TZS 46,000.
3 Goseji lent Monalisa TZS 400,000 paid directly into her bank account.
4 Monalisa paid Nyanzobe by cheque TZS 172,000.
5 Cash sales TZS 38,000.
7 Loveness paid Monalisa by cheque TZS 68,000.
9 Monalisa paid Kitambi in cash TZS 184,000.
11 Cash sales paid direct into the bank TZS 302,000.
15 P. Mkola paid Monalisa in cash TZS 192,000.
16 Monalisa took TZS 20,000 out of the cash till and paid it into the bank account.
19 Monalisa repaid Kapigawasi TZS 100,000 by cheque.
22 Cash sales paid direct into the bank TZS 24,400.
26 Paid motor expenses by cheque TZS 15,000.
30 Withdrew TZS 40,000 cash from the bank for business use.
30 Paid wages in cash TZS 64,000.
View Ans8. The following is the receipts and payment account of Chamwino social club for the year ending 31st December 2017:
Dr | Cr | ||
Details | TZS | Details | TZS |
Balance b/d | 202,500 | Salaries | 50,000 |
Subscription: Year 2016 | 40,000 | Printing and postage | 20,000 |
Year 2017 | 206,000 | General expenses | 7,500 |
Year 2018 | 60,000 | Drama expenses | 4,500 |
Donations | 5,400 | Stationery | 1,500 |
Proceeds of drama | 9,500 | Municipal taxes | 4,000 |
Sale of waste papers | 4,500 | Charity | 3,500 |
Electricity bills | 1,450 | ||
Additional Information
Use the information provided to prepare the following:
9. The following balances remained in the ledgers of John and James after they had prepared their trading account for the year ending 31st December 2016:
Details | Dr | Cr |
Gross profit | 271,500 | |
General reserve | 50,000 | |
Accounts payable | 215,000 | |
Premises 350,000 | 350,000 | |
Furniture 14,000 | 14,000 | |
Motor vans 32,000 | 32,000 | |
Accounts receivable 140,000 | 140,000 | |
Inventory, 31st December 194,200 | 194,000 | |
Wages & salaries 132,900 | 132,900 | |
Light & heat 13,600 | 13,600 | |
Rates & insurance 7,800 | 7,800 | |
Office expenses 8,300 | 8,300 | |
Rent receivable | 11,000 | |
Cash in hand 1,300 | 1,300 | |
Cash at bank 21,000 | 21,000 | |
Drawings: John 38,400 | 38,400 | |
James 46,500 | 46,500 | |
Current account balances on 1st January: John James | 500 2,000 | |
Capital accounts: John James | 250,000 200,000 | |
1,000,000 | 1,000,000 |
Additional information:
Use the information provided to prepare the following: