BKEEPING FORM THREE NEW NECTA FORMAT

LEARNING HUB TANZANIA

FORM THREE BOOK-KEEPING ANNUAL EXAMS: NAME…………………………………………….…STREAM…………  TIME-3:00HRS

 

 

INSRUCTIONS:

      These papers consist of THREE SECTIONS A, B and C.

      Answer ALL questions in ALL sections.

      ALL writing must be blue/black ink.

      Cell phones and Calculators are   NOT allowed in the examination room.

      Read carefully the instructions given under each section.

 

SECTION A (20 marks)

 

  1. For each of the items (i) – (x), choose the correct answer among the given alternatives and write its letter beside the item number

 

  1. Capital expenditure is:

 

  1. The extra capital paid in by the proprietor
  2. The cost of running the business on a day to day basis
  3. Money spent on buying fixed assets or adding value to them
  4. Money spent on buying current assets.
  1. Manufacturing profit is obtained when the cost of goods manufactured is less than:

 

  1. Market price of goods manufactured
  2. Cost of manufactures goods
  3. Market price of goods purchased
  4. Goods manufactured
  1. A company bought a machine for shs.10,000 after three years the total depreciation amounted to shs.3859; it was sold at shs.7,100.  The transfer from disposal account would be made to:

 

  1. Profit and loss account in debit side shs.959
  2. Profit and loss account in credit side shs.959
  3. Balance sheet shs.959
  4. Trial balance in debit column shs.959

 

  1. When the monthly bank statement is sent out which one of the following would not appear?

 

  1. Interest charged by the bank
  2. A dishonored debts
  3. A direct debts
  4. Unpresented cheque
  1. A request to a bank to make payments at regular intervals is known as:

 

A. Standing order   

B. Credit transfer

                       C. Bill of exchange   

                       D. Paying-in slip

  1. A club’s receipts and payments account is similar to a firms’:

 

  1. Balance Sheet 
  2. Capital account  
  3. Trading, and Profit and loss account       
  4. Cash Book  

 

  1. In a club Balance Sheet, subscriptions paid in advance are recorded as:

 

  1. A current asset
  2. A current liability
  3. A fixed asset
  4. Added to the accumulated fund

 

 

  1.                      Which of the following errors would be disclosed by the trial balance?

 

  1. Cheque Shs.65/= from Peter entered in Peter’s account as 56/=
  2. Selling expenses had been debited to sales account
  3. Credit sales of shs.400/= entered in both double entry accounts as shs.4,000/=
  4. A purchases of shs.300/= was omitted entirely from the books

 

 

  1. A decrease in provision for bad debts will:

 

  1. Increase the net profit for the year
  2. Increase the cash/bank balance
  3. Decrease the net profit for the year
  4. Decrease the cash/bank balance

 

  1. When a customer returns goods previously sold to him the shopkeeper will use a document called:

 

  1. Invoice
  2. Credit note
  3. Pay in slip
  4. Order note

xi. The movement of money or money worth from one person to another in exchange of goods and services is called;

  1. Price
  2. Posting
  3. Valuing
  4. Transaction

xii. A Statement showing a list of debit and credit account extracted from ledger is called?

  1. Trial balance
  2. Income and expenditure
  3. Balance sheet
  4. Ledger

xiii. The main aim of preparing trading profit and loss account is to get;

  1. Net profit
  2. Net income
  3. Gross profit
  4. Capital of business

xiv.  Which of the following is not an asset?

  1. Debtors
  2. Bank loan
  3. Stock
  4. Cash at bank

xv.  Sales invoice are first entered in the……

  1. Cash book
  2. Sales journal
  3. Vote book
  4. Sales ledger

 

  1. Match the items in list A with the responses in list b by writing the letter of the corresponding response beside the item number.

 

(i)                Depreciation calculation method which is at a lesser amount every following period.

(ii)              Where an item is entered, but both debit and credit entries are of the same incorrect amount

(iii)            Assumption that a business is to continue for a longtime.

(iv)            Where a correct amount is entered, but in wrong personal’s account.

(v)              Is a transfer of amount from cash to bank or from bank to cash

 

 LIST B

 

  1. Original entry error
  2. Contra entry
  3. Commission error
  4. Straight-line method
  5. Outstanding
  6. Going concern concept
  7. Bank statement
  8. Bad debts
  9. Dishonored cheque
  10. Diminishing balance method
  11. Surplus
  12. Prepaid
  13. Trade discount
  14. Cash discount

 

 

 

 

 

 

SECTION B (20 marks)

 

  1. On 31st December, 2008 the bank column of Tengeneza’s cash book showed a debit balance of sh. 15,000. The monthly bank statement written up to 31st December, 2008 showed a credit balance of sh. 29,500.

 

On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book:

 

Dividends of sh. 2,400 had been paid directly to the bank.

A credit transfer TRA- and Customs VAT refund of sh. 2,600 had been collected by the bank.

Bank charges sh. 300.

A direct debit of sh. 700 for the Charity subscription had been paid by the bank.

A standing order of sh. 2,000 for Tengeneza’s loan repayment had been paid by the bank.

Tengeneza’s deposit account balance of sh. 14,000 was transferred into his bank current account.

 

A further check revealed the following items:

 

Two cheques drawn in favor of Tamale sh. 2,500 and Fadiga sh. 2,900 had been entered in the cash book but had not been presented for payment.

Cash and cheques amounting to sh. 6, 900 had been paid into the bank on 31st December, 2008 but were not credited by the bank until 2nd January, 2009.

   Required

(i) Bring the cash book (bank column) up to date, starting with the debit balance of

sh. 15,000 and then balance the bank account.

(ii) Prepare a bank reconciliation statement as at 31st December, 2008.

 

  1. Write short notes on the following items
  1. Provision for bad debts
  2. Auditor and controller general
  3. Capital expenditure
  4. Subscription
  5. Accounting circle

5. (a) State five advantages of self balancing ledger and control accounts

    (b) Briefly explain five benefits of using petty cash system.

6. Masamu keeps books on single entry system as follows;

 

31.12.2016

31.12.2017

 

TZS

TZS

Club furniture

Stock

Debtors

Prepaid expenses

Creditors

Outstanding expenses

Cash

100,000

60,000

120,000

………

40,000

12,000

22,000

120,000

20,000

140,000

40,000

?

20,000

6,000

 

Receipts and payments for the year were as follows;

Item

Cash.

Receipt from debtors

Payment to customers

Carriage inwards

Drawings

Sundry expenses

Furniture purchased

420,000

200,000

40,000

120,000

140,000

20,000

 

Other information

There was a considerable amount of cash sales. Credit purchase in the year amounted to 230,000, provision for doubtful debts was to extend of 10% of debtors.

From the information provided, prepare;

a) trading profit and loss account

b ) total debtors and creditors control account as well as cash account

c) balance sheet as at 31st December 2017

 SECTION C (40 MARKS)

 

6. The following are the information of Nsumba Business on 31 December 2001.The trial balance failed to agree with the shortage of shs 17520 on the credit side. A suspense A/C was opened

During the year 2002 the following errors made in 2001 were discovered.

  1. A sale of goods to Balali shs 41400 was correctly entered in the sales day book but entered in the personal A/C as shs 57600.
  2. A private purchases of shs 6900 using business fund had been included in the business  purchases A/C
  3. Shs 3300 received from sales of old furniture had been entered in the sales A/C.
  4. Purchases day book had been overcastted by Shs 3600
  5. Bank charges shs 2280 entered in the cash book have not  been posted to the bank charges A/C
  6. A payment  made to Hamisa shs 1000 is recorded  to Hansila A/C in error

RQD

a)     Show the Journal entry to correct the above errors

b)     Write up a suspense A/C

c)      The net profit was originally calculated as shs 682, 200, Show the calculation of net profit figure.

7. The Assets and liabilities of star social club on 1stJanuary 2001 were as follows

 Cash in hand 26,800,bar stock 21,000, subscription outstanding for previous year 20,000.Insurance prepaid 300, furniture and equipment 43,000 and creditors for bar supplies 15,000

The following is the summary of receipt payment and notes of star social club on the year of 2001.

 

                RECEIPT & PAYMENT

RECEIPT

SHS

PAYMENT

SHS

Subscription

84,500

Cash to creditors of bar suppliers

141,500

Sale of bar stock

184,000

New furniture

6000

Sale of old furniture

1500

Dance & social expense

26,900

Dances and socials

34,700

Rent & rates

64,500

 

 

wages

52,000

 

 

Lighting & heating

10,600

 

 

Postage & Stationary

1800

 

 

insurance

800

 

 

NOTE

a)     The subscriptions received included 1500 relating to the previous year. The remaining of the subscription for that year was written off as bad debt.

b)     On 31/dec/2001, shs 4500/= subscription were outstanding for the current year of A/C

c)      The old furniture sold during the year of A/C had a book value of 900/= at the date of sales.

d)     The payment for insurance is a yearly  premium paid on 1stJuly  in each year

e)     Depreciation of 2500 is to be written off on furniture and equipment

f)       Bar stock on 31st December /2001 were valued  at 18,000

g)     On 31st December 2001 there were outstanding amount due on  bar creditor 17,500 and for lighting and heating 2700

RQD

  1. Prepare bar trading A/C statement of affairs at star subscription A/C and other workings
  2. Income & expenditure A/C
  3. Balance sheet as at 31, December, 2001.

8.  The financial year of the Toyo Company ended on 31st, December,2007.You have been asked to prepare a total debtors account and a total creditors Account in order to produce end-of- year figure for debtors and creditors for the draft final accounts.

   You are able to obtain the following information for the financial year from the books of original entry.

Sales-    cash………………………………………………………………….344,890

-          Credit……………………………………………………………   268,187

Purchases      - cash………………………………………………………. 14, 440

-          Credit    …………………………………………………………….   496,000

Total receipt from customers …………………………………………………. 600,570

Total payments to supplier …………………………………………… ……… 503,970

Discounts allowed (all credit customers) ……………………………………...   5,520

Discount received (all from credit supplier)…………………………………..… 3,510

Refunds given to cash customers……………………………………. ………..…5,070

Balance in the sales ledger set-off against balance in purchases ledger…………. 70

Bad debts written…………………………………………………………….…. 780

Increase in the provision for bad debts…………………………………………… 90

Credit notes issued to credit customers …………………………………………. 4,140

Credit notes received from credit suppliers…………………………………….... 1480

 According to the audited financial statements for the previous year’s debtors and creditors as at 31st, December, 2006 were Tshs 26,555/= and Tshs 43,450/= respectively.

REQUIRED

Draw up the relevant total Accounts entering end-of-year total for debtors and creditors.

 

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LEARNINGHUBTZ.CO.TZFORM THREE BKEEPING MODAL SERIES 7

LEARNING HUB TANZANIA

BOOK-KEEPING - TERMINAL EXAMINATION

FORM THREE

TIME: 2½HRS                                                                                                         MAY, 2017

NAME:____________________________________                         CLASS:___________

INSTRUCTIONS

-          Answer all questions

  1. Choose the correct answer from the given alternatives write its letter beside the item number

i)                    Which of the following is a liability?

  1. Debtor
  2. Loan from exim bank
  3. Building
  4. Prepaid expenses

 

ii)                  The cash payment of T.shs 439,000 to Juma would appear as follows:

  1. Credit Juma account, credit cash account
  2. Debit Juma account, credit cash account
  3. Debit bank account, credit Juma account
  4. Debit cash account, credit Juma account

 

iii)                Which of the following are personal accounts?

  1. Building and machine
  2. Wages and salaries
  3. Account receivable and account payables
  4. Profits and loss

 

iv)                In the trial balance, accumulated provision for depreciation account is

  1. Shown as a credit item
  2. Not shown as it is part of depreciation
  3. Shown as a debit item
  4. Sometimes shown as a credit, sometimes as a debit

 

v)                  Which of the following is not correct?

  1. Assets – capital=liabilities
  2. Liabilities + capital=assets
  3. Liabilities + Assets=capital
  4. Assets – liabilities =capital

 

 

vi)                Which of the following should be charged in the trading, profit and loss account(income statement)

  1. Office rent
  2. Work-in-progress
  3. Direct materials
  4. Carriage on raw materials

 

vii)              At the end of trading  period, bad debt account is closed and transferred to the

  1. Balance sheet
  2. Profit and loss account
  3. Trading account
  4. Allowance for doubtful debits account

 

viii)            Revenue expenditure is

  1. The extra capital paid in buying non-current assets
  2. The extra purchase of goods for sale
  3. Money spent on selling fixed assets
  4. The cost inairred in running the business on a day to day basis

 

ix)                An allowance made on the date of sales in respect of the date of payment is

  1. Discount allowed
  2. Cash discount
  3. Trade discount
  4. Quantity discount

 

x)                  If shs 1000/= was added to purchases instead of being added to a fixed asset

  1. Net profit only would be understated
  2. Net profit only would be overstated
  3. Both gross profit and net profit would be understated
  4. Both gross profit and net profit would be overstated

 

  1. Match the following by choose the correct answer from column B and write its letter beside the item number in column A

Column A

Column B

i)                    An item is entered in the wrong class of account

ii)                  Where errors cancel each other

iii)                Where transaction is completely omitted from the books

iv)                Where correct accounts are used but each item is shown on the wrong side of an account

v)                  Where correct amount is entered in the wrong account

vi)                Where incorrect amount is entered in the accounts

vii)              Incorrectly adding up figures to give an answer which is less than it should be

viii)            Used to set the amount which will make the trial balance to balance when is affected by errors

ix)                When transaction is posted twice in along the correct principles  of double entry system

x)                  Errors committed when dualistion aspect of a transaction is not followed

  1. Error of omission
  2. Error of principle
  3. Compasating error
  4. Error of commission
  5. Error of original entry
  6. Error of complete reversal
  7. Error of duplication
  8. Transposition error
  9. Suspense account
  10. Arithmetical errors
  11. Single entry errors

 

SECTION B

  1. Write short notes on the following

a)      Capital expenditure

b)      Bad debts

c)      Depreciation of non-current asset

d)      Manufacturing account

e)      Single entry system

 

  1. Kibaha education centre had received house rent for 1982 amounting to sh. 72,000. Out of this amount shs. 4,000 related to the year ending December 1983.

Required:

Rent received account to show the amount transferred to the profit and loss account

 

SECTION C

  1. Jangua started business on 1st January 1993.  Purchases and disposals of machines over three years were as follows.

machine

Date of purchase

Cost(shs)

Date of disposal

Disposal proceeds(shs)

MAI

1Jan 1993

5000,000

-

-

MB 2

1Jan 1993

2500,000

1 Jan 1995

900,000

MC 3

1 Jan 1995

7000,000

-

-

The machines are depreciated on straight line method using rate of 20% per annum

Required:

a)      Machine account

b)      Provision for depreciation account

c)      Disposal of machines account

 

 

 

 

 

 

  1. K owns a store, her records are incomplete. You have been called in to prepare her accounts.

Through investigation the following information was obtained

                                                                                     01.01.2013               31.12.2013

Stock                                                                             2,100                           2,240

Trade creditors                                                                 960                            1,000

Motor vans                                                                    1,200                           1,000

Debtors                                                                          1,300                           1,040

Rates pre-paid                                                                     80                                96

Cash at bank                                                                     900                           2,344

Additional information

Drawings during the year amounted to Tshs 120 per week

Legacy of Tsh.400 received on March 2013 had been paid into the business bank account

Required

a)      Statement of affairs at 1st January 2013

b)      Statement of affairs at 31st December 2013

c)      Statement of profit or loss for the year 2013

  1. From the following prepare manufacturing, trading profit and loss account for the year ended 31.12.2013

Stock at 01.01.2013:

Raw materials                                                                  1,845,000

Work in progress                                                             2,360,000

Finished goods                                                                1,747,000

Purchases: raw materials                                                6,430,000

Carriage on raw materials                                                 160,500

Direct labour                                                                  6,581,000

Office salaries                                                                1,692,000

Rent                                                                                  270,000

Office lighting and heating                                              576,000

Depreciation:

Works machinery                                                            830,000

Office equipment                                                            195,000

Sales                                                                           20,060,000

Factory fuel and power                                                   592,000

Additional notes on 31.12.2013

Stock at 31.12.2013

Raw materials                                                              2,021,000

Work-in-progress                                                        1,739,000

Finished goods                                                         2, 1488,500

      Rent is to be apportioned as follows:

       Factory 

 

       Office 

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