(For Both School and Private Candidates)

Time: 3 Hours Year: 2022


1. This paper consists of sections A, B and C with a total of nine (9) questions.

2. Answer all questions in sections A and B and two (2) questions from section C.

3. Section A carries twenty (20) marks and section B and C carry forty (40) marks each.

4. Non programmable calculators may be used.

5. Cellular phones and any unauthorized materials are not allowed in the examination room.

6. Write your Examination Number on every page of your answer booklet(s).


SECTION A (20 Marks)

Answer all questions in this section.

Put 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) Identify the name of the statement prepared and sent by the coinsignee to the consignor showing the goods sold, price realized, expenses incurred, commission payable and the amount due from the consignee.

  1. Proforma invoice
  2. It Account sales
  3. Delivery note
  4. Price list
  5. Consignment note
Choose Answer :

(ii) Which of the following statements describe the characteristics of a joint venture?

  1. Equal sharing of profits and losses
  2. Control is vested in operations and not assets
  3. It is a permanent association
  4. It is a temporary partnership that ceases at the end of agreed venture period
  5. It is an association of partnership groups
Choose Answer :

(iii) Which account should partners prepare in order to share the profits or losses resulting from partnership business?

  1. Profit and loss account
  2. Current account
  3. Capital account
  4. Profit and loss appropriation account
  5. Partners subscription account
Choose Answer :

(iv) Study the following book keeping errors and identify the set of errors which do not affect the agreement of the trial balance.

  1. Sales of TZS 10,500 to Paul entered in Pauline account.
  2. Cheque payment of TZS 13,400 for motor expenses entered in cash book only.
  3. Purchase of goods worth TZS 4,400 from C. Bhoke entered in purchases and C. Bhoke accounts as TZS 4,040.
  4. Wages account added up incorrectly, being overcast by TZS 1,000.
  1. (iii) and (iv)
  2. (i) and (iii)
  3. (ii) and (iii)
  4. (ii) and (iv)
  5. (i) and (iv)
Choose Answer :

(v) Which is the correct statement about the starting and ending dates of the government financial year in Tanzania?

  1. Starts on 1 m July of every year and ends on 30th June of the following year.
  2. Starts on 30th July of every year and ends on 1st June of the following year.
  3. Starts on January of every year and ends on 31st December of the same year.
  4. Starts on 1" July of every year and ends on 1st June of the following year.
  5. Starts on 30th January of every year and ends 30th June of the following year.
Choose Answer :

(vi) How is the amount of capital in a single entry book keeping system computed?

  1. By opening cash account.
  2. By opening total debtors account.
  3. By opening profit and loss account.
  4. By opening statement of affairs.
  5. By opening total creditors account.
Choose Answer :

(vii) A lieu bought a machine worth TZS 3,200,000. It is to be depreciated at a rate of 25% using the reducing balance method. Calculate the remaining book value of the machine tiller two years.

  1. TZS 1400,000
  2. TZS 1,800,000
  3. TZS 2,400,000
  4. TZS 2,600,000
  5. TZS 1,100,000
Choose Answer :

(viii) The amount kw prepaid expenses is presented in the balance sheet as

  1. non-current asset.
  2. current liability.
  3. current asset.
  4. an equity item.
  5. non-current liability.
Choose Answer :

(ix) Which of the following is the correct presentation of donations received for a specific purpose in the statement of financial position of a non-profit making organization?

  1. Asset
  2. Income
  3. Expense
  4. Contingency
  5. Liability
Choose Answer :

(x) Given a balance in the adjusted cash book of TZS 20,000, uncredited cheques of TZS 5,000 and unpresented cheque of TZS 3,000; What is the balance according to the bank statement?

  1. TZS 18,000
  2. TZS 23,000
  3. TZS 25,000
  4. TZS 28,000
  5. TZS 22,000
Choose Answer :

(xi) How is the term Prime cost in manufacturing account categorized?

  1. The sum of all direct costs.
  2. The sum of all indirect costs.
  3. The sum of all direct and indirect costs.
  4. The sum of all costs of a completed product.
  5. The sum of all costs of work in progress.
Choose Answer :

(xii) Which of the following would you consider the appropriate accounting equation when determining the closing balance in the sales ledger control account?

  1. Opening balance + credit sales to debtors-amount paid to suppliers.
  2. Opening balance + credit purchases from suppliers-amount paid to suppliers.
  3. Opening balance-credit sales to debtors + amount received from debtors.
  4. Opening balance - credit purchases from suppliers - amount paid to suppliers.
  5. Opening balance + credit sales to debtors-amounts received from debtors.
Choose Answer :

(xiii)In which account would the amount for sales, purchases and return of goods for each department be recorded when preparing departmental accounts?

  1. Balance sheet
  2. Departmental profit and loss account
  3. Revenue expenditure account
  4. Departmental trading account
  5. Capital expenditure account
Choose Answer :

(xiv) Which of the following combination of accounting entry and account represent the correct entry and account to which the total of the sales journal is posted?

  1. Debit side of sales account
  2. Credit side of sales account
  3. Debit side of sales returns account
  4. Credit side of purchases account lt
  5. Debit sale of purchases returns account
Choose Answer :

(xv) Which one is the characteristic of exchequer account?

  1. It is a fixed deposit account maintained by the central bank for all deposits by the commercial bank.
  2. It is an account maintained by the central bank in which public revenues arc deposited in order to meet the approved expenditure.
  3. It is an account maintained by the commercial banks Ibr the central bank in order to meet the minimum reserve requirements.
  4. It is a saving account maintained by the central bank from which all senior government officers allowances are deposited.
  5. It is a special account maintained by the central bank in order to rescue the commercial banks from financial crisis.
Choose Answer :

2. For each of the items (i) - (v), match the descriptions of Book Keeping concepts 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

(i) The exchange of equal values or benefits between two or more persons.

(ii) The immediate receipts or payments of cash for a financial transaction.

(iii) The transaction for which payments or receipts of cash is made later.

(iv) The summary of business transactions affecting a person, property, income or expenses.

(v) The name of a person to whom the business owes money

  1. Accounting
  2. Book Keeping
  3. Cash transactions
  4. Credit transactions
  5. Creditor
  6. Debtor
  7. Business transactions
  8. Economic transactions

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SECTION B (40 Marks)

Answer all questions in this section.

3. For most businesses, control of cash includes both bank and cash transactions. Firms are required to bring together the separate cash and bank in one book. Briefly describe three types of cash books which are used to record cash and bank transactions.

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4. Before the preparation of financial statements for a particular accounting period, businesses need to make adjustments. This is done to particular accounts in order to ensure the financial statements are accurate. Show how you would treat the following in the statement of financial position.

(i) Unused stock of stationery.

(ii) Accrued interest.

(iii) Unearned commission.

(iv) Accrued rent income.

(v) 18 months loan to Book Keeper.

(vi) Accrued salaries.

(vii) Bank overdraft.

(viii) Interest due on bank overdraft.

(ix) Long term notes payable.

(x) Prepaid office rent.

View Ans

5. Post the entries from the following cash book to their respective ledger accounts and balance off the accounts as at 31st August 2016.

Cash Book




























Motor van








Balance c/d










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6. From the following list of balances extracted from the books of Saida Majid for the Month of July 2019, prepare her Trial Balance as at 31st July 2019.





Bills payable




Insurance of buildings




Cash at bank


Interest receivable


Carriage inwards


Loan from CRDB


Purchases returns


Accounts payable


Office furniture


Office building


General expenses


Motor vehicle




Accounts receivable


Cash in hand


Warehouse building


Opening inventory


View Ans

SECTION C (40 Marks)

Answer two (2) questions from this section.

7. The following are business transactions of Mihemo Enterprises for the month of November 2018:

November 1 Balance brought forward from the last month: cash TZS 295,000 and Bank TZS 4.240,000.
2 Cash sales TZS 310,000.
3 Banked TZS 200,000 out of the cash till.
4 Nyaso paid Mihemo Enterprises by cheque TZS 194,000.
5 Paid for postage stamps in cash TZS 80,000
6 Bought office furniture by cheque TZS 310,000
7 Paid Mwiza by cheque TZS 94,000
9 Received business rates refund by cheque TZS 115,000
11 Withdrew TZS 150,000 from the bank for business use.
12 Paid wages in cash TZS 400,000
13 Cash sales TZS 430,000.
14 Paid motor expenses by cheque TZS 81,000.
16 Nyakaro lent us TZS 1,500,000 in cash.
17 Mbuli paid Mihemo Enterprises by cheque TZS 174,000.
18 Paid general expenses in cash TZS 35,000
18 Paid insurance by cheque TZS 320,000.
19 Ngosha paid Mihemo Enterprises by cheque TZS 210,000.
20 Cash purchases TZS 150,000.
21 Cash withdrawn from the bank TZS 50,000 for business use.
22 Cash sales paid direct into the bank TZS 3,100,000.
23 Paid wages in cash TZS 320,000.
24 Received a cheque for TZS 324,000 from Mashaka.
25 Cash drawings TZS 200,000.
26 Repaid Nyakaro TZS 750,000 by cheque.
27 Paid stationery TZS 100,000 in cash.
27 Received cash from Makwilo TZS 1,000,000.
28 Banked TZS 150,000 out of the cash till.

Write up the Two Column Cash Book of Mihemo Enterprises and balance off the Cash and Bank accounts at 30th November 2018.

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8. The following information was extracted from the books of Upendo football Club for the year ended 31st December 2018:

1/1/2018 Balanced b/d 524,000 Bar supplies 3,962,000
Subscriptions 1,331,000 Wages:
- Grounds men
Bar sales 5,628,000 -Bar staff 624,000
Donations 120,000 Bar expenses 234,000
Repairs to bar counter 119,000
Ground up keep 229,000
Stationery 138,000
Travelling expenses 305,000
31/12/2018 Balance c/d 1,053 000
7,603,000 7,603,000

(i) The club treasurer prepared the following list of assets and liabilities at the beginning and end of the financial year.

1/1/2018 31/12/2018
Details TZS TZS
Bar stock 496,000 558,000
Owing for bar supplies 296,000 340,000
Bar expenses owing 25,000 36,000
Travelling cost accrued - 65,000

(ii) Football stand at 31st December 2017 was valued at TZS 400,000 and at the end of the year on 31st December 2018 depreciated by 10% per annum.

(iii) The equipment at 31st December 2017 was valued at 550,000 and at the end of the year on 31st December 2018 is to be depreciated by 10% per annum.

(iv) Subscription owing by members at 31st December 2018 amounted to TZS 66,000.

Construct the following for the year ended 31st December, 2018:

  1. Statement of affairs as at 1st January 2018.
  2. Creditors control account.
  3. Bar expenses account.
  4. Bar income statement.
  5. Statement of income and expenditure.
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9. The audit of M Johnson's books for the year ended 31st December 2017 revealed a debit balance of TZS 3,012,000 in the suspense account and the following accounting errors:

(i) The salaries and wages account was overstated by TZS 350,000 and rent received account also was overstated by TZS 350,000.

(ii) The purchases account was under cast by TZS 1,100,000.

(iii) Sales amounting to TZS 2,500,000 were wrongly recorded as TZS 5,200,000 in the sales account.

(iv) An amount paid to Aisha was debited to her account as TZS 9,800,000 instead of TZS 8,900,000.

(v) Rent account was under cast by TZS 100,000.

(vi) Fees income was over cast by TZS 80,000.

(vii) Discounts received TZS 24,000 was debited to discounts allowed.

(viii) A credit sale of TZS 20.000 to Regina was passed through the purchases journal.

(ix) Cash received from Christina TZS 80,000 was correctly entered in the cash book but posted to Christian account as TZS 88,000.

(x) Interest received TZS 15,000 was debited to commission received in error.

(xi) Cash paid to Tarimo TZS 22,000 was correctly entered in the cash book but posted to Tarimo Ltd as TZS 20,000.

Prepare Journal entries (narrations are not required) and the Suspense Account to correct the accounting errors.

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