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 Hour Year: 2024

Instructions

1. This paper consists of sections A, B and C with a total of nine (9) questions.
2. Answer all questions in sections A, B and C.
3. Section A carries fifteen (15) marks, section B carries forty (40) marks and C carries forty five (45) marks.
4. Non-programmable calculators may be used.
5. Communication devices 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 (15 Marks)

Answer all questions in this section.

1. For each of the items (i) - (x), choose the correct answer from the given alternatives and write its letter beside the item number in the answer booklet provided.

(i) Given opening capital of TZS 500,000, closing capital of TZS 1,800,000, and drawings for the year of TZS 200,000; how much would be the profit or loss for the year?

1. Loss for the year is TZS 1,000,000
2. Loss for the year is TZS 2,100,000
3. Profit for the year is TZS 2,500,000
4. Loss for the year is TZS 1,100,000
5. Profit for the year is TZS 1,500,000

(ii) Which accounts balances would appear on the debit column of the Trial Balance?

1. Accounts payable and Accounts receivable
2. Accounts receivable and Interest paid
3. Rent received and Accounts payable
4. Bank overdraft and Account receivable
5. Interest received and Bank Overdraft

(iii) Which item would not be considered in the process of preparing Receipts and Payments account for the religious organization?

1. Cheques paid during the year
2. Subscriptions received
3. Surplus
4. Bank balance
5. Receipt from sale of asset

(iv) Ms. Akilimali started business with cash from her savings of TZS 1,000,000, equipment valued TZS 200,000, motor van valued TZS 2,000,000 and a loan from Faraja SACCOs TZS 300,000. How much would be Ms. Akilimali’s capital?

1. TZS 1,200,000
2. TZS 3,500,000
3. TZS 2,900,000
4. TZS 2,200,000
5. TZS 3,200,000

(v) What is the recommended method of apportioning expenses in accounting for departmental stores?

1. To allocate expenses in proportion to sales
2. To charge against each department its uncontrollable costs
3. To charge equally to each department
4. To allocate expenses in proportion to purchases
5. To charge against each department its controllable costs

(vi) If the Book Keeper debited the repair cost for office equipment of TZS 50,000 to office equipment account, what would be the effect on income statement?

1. Net profit would be understated
2. Net profit would be overstated
3. Net profit would not be affected
4. Assets would be understated
5. Both gross profit and net profit would be overstated

(vii) Which items would you record on the credit side of the Sales Ledger Control Account?

(i) Bad debts
(ii) Returns outwards
(iii) Provision for bad debts
(iv) Returns inwards

1. (i) and (ii)
2. (i) and (iii)
3. (ii) and (iii)
4. (iii) and (iv)
5. (i) and (iv)

(viii) A retailer is offered credit terms of 2% on invoice price when payment is made within 10 days, otherwise the debt is to be paid in full within 30 days (i.e. 2/10, n/30). Which kind of discount is reflected in this business arrangement?

1. Trade discount
2. Cash discount
3. Bank discount
4. Retail discount
5. Production discount

(ix) Which one are the primary objectives of hiring external auditor annually?

(i) To detect errors and fraud
(ii) To prove true and fair view of business state of affairs
(iii) To be assisted to improve accounting system
(iv) To confirm if proper books of accounts are being kept

1. (i) and (ii)
2. (i) and (iii)
3. (ii) and (iii)
4. (ii) and (iv)
5. (iii) and (iv)

(x) Your school bought a combine harvester machine for TZS 20,000,000. It is to be depreciated at a rate of 25% per annum on diminishing balance. What would be the remaining book value of the machine after 2 years?

1. TZS 10,000,000
2. TZS 15,000,000
3. TZS 5,000,000
4. TZS 16,250,000
5. TZS 11,250,000

2. For each of the items (i) - (v), match the descriptions of the types of ledger in List A with their corresponding names in List B by writing the letter of the correct response beside the item number in the answer booklet provided.

SECTION B (40 Marks)

Answer all questions in this section.

3. Briefly differentiate Continuous and Interim audits. Give four points.

3. Briefly differentiate Continuous and Interim audits. Give four points.

5. Dotto is a sole trader at Makambako in Njombe, the trader has limited skills in recording credit sales in the books of prime entry. The following are his credit sales for the month of February 2022:

February 1   Sold to Mchikichini Secondary School:

• 15 boxes of continental chalks @ TZS 32,000
• 4 red pens boxes @ TZS 7,500
• 12 blue pen boxes @ TZS 5,500
• 100 manila cards @ TZS 2,000
• 2 pieces of Epson black ink No. 664 @ TZS 32,000

February 5   Sold to Sonia traders:

• 15 dozen of blue band at TZS 6,000 per dozen
• 5 dozen of school shoes @ TZS 30,000 per piece.

February 12   Sold goods worth TZS 320,000 to Janelle.

February 15   Sold to Kiwele:

• 30 kg of rice @ TZS 2,900 per kg
• 15 kg of sugar @ TZS 2,500
• 30 dozens of exercise books at TZS 700 per pair
• 1 dozen of T-shirts at TZS 25,000 per T-shirt.

February 25   Sold 25 bags of Dangote cement to Mwendwa at TZS 16,500 per bag.

Assist Dotto to enter the transactions for February in the Sales Day Book and post the total credit sales for the month to the Sales Account in the general ledger.

6. Mtafutaji, a sole trader started business on 1^st April 2022 with cash on hand TZS 10,000,000. During the month ending 30^th April, 2022, he had the following transactions:

Record the transactions for April, 2022 in the Cash and Bank Accounts, balance off the accounts on 30^th April 2022 and bring down the balances on 1^st May, 2022.

SECTION C (45 Marks)

Answer all questions in this section.

7. Nyota and Mwezi have been in partnership sharing profits and losses in the ratio of 3:2. They employed you as a part time Book Keeper and charged you with the duty of recording business transactions and preparing the firm’s financial statements. The following information was extracted from the firm’s accounting records:

Nyota and Mwezi Trial balance as at 31^st December 2021

Additional information:

1. Wages and salaries accrued was TZS 63,000
2. Rent and rates prepaid was TZS 48,500
3. Closing stock on 31^st December 2021 was TZS 292,750
4. Nyota to receive a salary of TZS 60,000
5. Each partner to receive a 10% interest on capital

Use the information provided to prepare the Statement of Income and Profit or Loss Appropriation for the year ending 31^st December, 2021 and Statement of Financial Position as at 31^st December 2021.

8. Use the information provided to prepare the Goods Sent on Consignment, Consignment to Nyakato, Consignee and Bank Accounts in the books of Mr. Kimara for the year ending 31^st December, 2022:

Mr. Kimara consigned good to Nyakato costing TZS 2,000,000 on 1^st January 2022. On sending the goods, he paid TZS 40,000 for freight, TZS 100,000 for insurance, TZS 100,000 for packing and TZS 20,000 as loading charges.

Nyakato conducted the business successfully and managed to send an account sales to Mr. Kimara showing that, the proceeds from sales were TZS 3,000,000 and incurred TZS 30,000 for landing charges, TZS 120,000 for transport and TZS 30,000 for storage. The unsold stock of goods in the hands of Nyakato was valued at a cost of TZS 600,000.

The agreement between the two parties shows that, Mrs. Nyakato is entitled to a commission of 5% and 1% del credere on sales. A sight draft was sent to Mr. Kimara for the amount due to him.

9. Prepare the Statement of Manufacturing Cost and Income Statement for the year ending 31^st December 2021 using the following information: