THE PRESIDENT’S OFFICE

MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

COMPETENCE BASED  SECONDARY EXAMINATION SERIES

ANNUAL  EXAMINATION

FORM TWO

BOOK KEEPING

       062                                                                      

TIME: 2:30 HOURS                                                      November, 2021

Instructions

1.      This paper consists of sections A, B and C with a total of seven (7) questions.

2.      Answer all questions.

3.      Section A and B carry twenty (20) marks each and section C carries sixty (60) marks.

4.      All answers must be written in the spaces provided.

5.      All writings must be in blue or black ink except for drawings which must be in pencil.

6.      Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.

7.      Write Your Examination Number on the top right of every page.

SECTION A: (20 Marks)

Answer all questions in this section

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

(i)                 What is the purpose of book keeping? 

            A. To interpret the double entry records

B.     To prepare financial statements at a regular intervals

C.     To record all the financial transactions of the business

D.    To summarize the financial position of the business.

(ii)              Which statement describes the purpose of trial balance?

A.    It ensures the ledger accounts contain no errors

B.     It indicates errors where errors have arisen 

C. It checks the arithmetical accuracy of double entry

D. It prevents errors from occurring.

(iii)            General ledger accounts that record incomes and expenses such as purchases, sales, wages and salaries: A.Real accounts

B.     Personal accounts

C.     General accounts 

D. Nominal accounts.

(iv)             Which statement describes development expenditure?

1.      They are registered in the assets register of the government 

2.      They are the day-to-day running expenses of the government

3.      They are assigned depreciation rate (if applicable)

A.    1 and 2

B.     2 only

C.     3 only 

D. 1 and 3.

(v)               The compulsory payments by individuals and firms to the government are of two categories:

A.    Fines and penalties

B.     Direct taxes and indirect taxes 

C.Open taxes and closed taxes

D. Fees and dividends.

(vi)             Why an income statement is prepared?

A.    To account for the revenues and expenses of a period

B.     To calculate the surplus or deficit of the organization 

C. To list the ledger balances on a particular date

D. To summarize the business bank account.

(vii)          Which account concept states that the business transactions must be separated from the personal transactions of the owner?

A.    Historical cost

B.     Going concern

C.     Money measurement

D.    Business entity.

(viii)        The amount of cash or stock taken from the business by the owner for their personal use:

A.    Expenses

B.     Income

C.     Drawing

D.    Profit.

(ix)             What is the going concern principle?

A.    Accounting records are prepared assuming that the business will continue to operate in the foreseeable future

B.     Income and expense should be accounted for in the same way they were accounted for in previous periods

C.     Profit should not be anticipated and losses should be written off as soon as they are taken

D.    Revenue and costs should be recognized as they are earned or incurred, not when the money is received or paid.

(x)               Why would a Bank Manager look at trader’s financial statement?

A.    To calculate how fast trade creditors were being paid

B.     To check if the trader would be able to repay a loan 

C. To find out if customers will receive continuous supplies

D. To know if inventory levels are too high.

2.      Match the items in column A with the response in column B by writing the letter of the response besides the item number in the space provided:

Answers:

SECTION B: (20 Marks)

Answer all questions in this section

3.      Kibonde, an accountant for Bee& Cee Company is very happy as he has just finished preparing the trial balance as at 31^st March 2021 in which the debit column seems to agree with the credit column. However he has been told by assistant that the agreement of trial balance totals is not a proof that the trial balance is free from errors. Outline the possible mistakes (five) that may have been committed in Kibonde’s accounts (ledger)

(a)               _______________________________________________________________

(b)               _______________________________________________________________

(c)               _______________________________________________________________

(d)               _______________________________________________________________

(e)               _______________________________________________________________

4.      Show the account to be debited and credited in each of the following transactions:

SECTION C: (60 Marks)

Answer all questions in this section

5. The following trial balance was extracted from the books of Muha as at 30^th September 2019.

Trial balance as at 30^th September 2019

Closing stock was valued at TZS 135,000.

Required:

(a)   Prepare his income statement for the year ended 30^th September 2019.

(b)   Prepare his statement of financial position as on that date and clearly show the total assets, net assets and owner’s equity.

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6.The bank column in the cash book for November 2004 and the bank statement for that month for Kamgunda are:

Cash book

Required:

(a)               Write up the cash book up to date and state the new balance as on 30^th November 2004.

(b)               Draw up a bank reconciliation statement as on 30^th November 2004 starting with the balance as per adjusted cash book.

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7.Bwana Fulani started business on 1^st January 2021 to deal with cheap items with capital of TZS 500,000 in cash. He made the following transactions during the month of January.

        Jan 2          Purchased goods for cash TZS 17,500

Required:

Enter the above transactions into the following accounts, balance them at the end of January and bring forward the balances on 1^st February where necessary:

(a)   Cash account

(b)   Jumong account

(c)   Koboko account           

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