THE PRESIDENT’S OFFICE

MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

COMPETENCE BASED SECONDARY EXAMINATION SERIES

BOOK KEEPING ANNUAL EXAMINATIONS

FORM FOUR-2022

INSTRUCTIONS 

1. This paper consists of section A, B and C with a total of nine (9) questions.
2. Answer all the questions in section A and B and two (20 questions from section C.
3. Section A carries Twenty (20) marks, section B and C carry forty (40) marks each.
4. Non-programmable calculators may be used.
5. All communication devices, programmable calculators and any unauthorized materials are not allowed in the examination room.
6. Write your Exam ination Number on every page of your answer booklet (s)

SECTION A (20 Marks)

Answer all questions in this section

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

1. The profit which expressed as a fraction or percentage of the selling price is known as

1. Net profit
2. Margin
3. Markup
4. Rate of stock turn over
5. Non-of the above

2. A customer buys 100 goods of Tzs 5000 each and has been given a 25% trade discount if he pays within 30 days. What amount would he pays within discounting periods?

1. Tzs 735000
2. Tzs 573000
3. Tzs 125000
4. Tzs 625000
5. Tzs 375000

3. In the books of consignor the balance of the consignment stock account would be shown

1. As an asset in the balance sheet
2. As a liability in the balance sheet
3. On the credit side of trading account
4. On the debit side of consignment account
5. Consignors account

4. Which of the following is a capital expenditure?

1. Rent
2. Wages
3. Salaries
4. Fire insurance
5. Motor van

5. How could a purchase of a non-current asset by cheque affect the balance sheet

1. By decreasing non-current assets accounts and decrease bank account
2. By increasing Bank account and decrease Bank Account?
3. By increasing non current asset account and decreasing cash account
4. By increasing non-current asset account and decreasing bank account

6. What is the purpose of the provision for doubtful debts account in the business?

1. To write off bad debts
2. To record all possible bad debts
3. To recover all bad debts
4. To provide debtor discounts
5. To record bad allowance

7. A cheque which is not accepted for payment by the bank due to insufficient fund in the drawers bank account is referred to as

1. Dishonoured cheque
2. Outstanding cheque
3. Bank lodgment
4. Unrecorded cheque
5. Stale cheque

8. Which one of the following would you not take into account in calculating working capital?

1. Cash
2. Debtors
3. Amount at bank
4. Creditors
5. Motor vehicles

9. In the books of consignors the acceptance of bills of exchange by the consignee will be credited to

1. Consignment account
2. Consignees account
3. Bill receivable account
4. Bill payable account
5. Trading account

10. In case of del-credere commission, the liability for bad debts is a burden to?

1. Consignees
2. Consignor
3. Customer
4. Profit and loss account
5. Consumer

11. X and Y are partners in a firm sharing profit and losses in the ratio of 3:1. Z is admitted as a partner who pays Tzs 4000/= as a goodwill. The profit sharing ratio is 2:1:1. Then goodwill is credited to:

1. Y’s capital 4000/=
2. X’s capital 4000/=
3. X’s capital 3000/= and Y’ s capital 1000/=
4. Profit and loss Appropriation account
5. Revaluation account

12. Where will you record interest on drawing

1. Debit side of profit and loss appropriation account
2. Credit side of profit and loss appropriation account
3. Credit side of profit and loss accounts
4. Credit side of capital/current account only
5. Partners capital account

13. In the absence of partner’s agreements, partners are entitled to

1. Salary
2. Commission
3. Interest on loan and advances
4. Profit share in capital ratio
5. Share profit equally

14. The users of accounting data;

1. Farmer, teacher and banker
2. Doctors, bankers and government
3. TRA, School and Hospitals
4. Trader, bankers and government
5. Schools, Market and head of Dept

15. The asset are arranged in order of liquidity which is the descending order in which current asset should be shown in the balance sheet.

1. Inventory, account receivable, bank, cash
2. Inventory, account receivable, cash, bank
3. Account receivable, inventory, bank, cash
4. Cash, bank, account receivable, inventory
5. Bank, Inventory, cash, account receivable

2. Match the explanations of Auditing concept in Column A with the corresponding terms in Column B by writing the letter of the correct response beside the items number in the answer booklet provided.

SECTION B (40 MARKS)

Answer all questions in this section

3. Book keeping involves the recording on a daily basis of a company’s financial transactions whether on single entry system or double entry system and because of book keeping, companies are able to track all financial information on its books to make key operating, investing, and financial information on its books to make key operating, investing, and financing decisions. Outline four reasons stating why single entry system is not important in book keeping.
4. A trial balance was extracted from books of C. Mtumzima and it was found that the debit side exceeded the credit side by TZS 1,000,000/=. This amount was recorded in the suspense Account. The following errors were later discovered and corrected.

1. Purchases were over casted llater by TZS 400,000/=
2. An amount paid by T.Lulanga was debited to the control Account as TZS 870,000/= instead of TZS 780,000/=
3. Sales were under-added by TZS 510,000/=

Required:

1. Open Journal entries to rectify above errors
2. Write up the suspense Account as it would appear in C.Mtumzima’s Ledger

5. Shedrack Traders had the following assets and liabilities on the date shown:

01.01.202031.12.2020

Premises     14,500   14,500

Motor cars      2,800   1,800

Furniture      3,500   3,200

Stock in Trade     11,200   13,100

Trade debtors      10,900   11,400

Trade creditors     14,600   17,200

Cash at bank and in hand    1,330   3,980

Prepaid expenses     670   1,120

Accrued expenses     1,300   600

Additional information 

During 2020 he withdrew TZS 300 per month from the business bank account for his personal use. On 4 July 2020 he sold his personal car for TZS 12,000 and paid the proceeds into the business bank account

Required:

Calculate the net profit or loss made by Shedrack Traders in 2020.

6. On 31^st December 2017, the cash book balance of Bonge Traders was TZS 253,700/= where the bank statement showed a credit balance of TZS 256,700/=  In comparing these two balances, the following were discovered;

Cheques not yet presented for payment TZS 123,400/=

Cheques paid into the bank but not yet credited by the bank account TZS 121,600/=

Items shown in the bank statement but not yet entered in the cash book were as follows

1. Bank charges      TZS 2,400/=
2. Standing order     TZS 4,600/=
3. Dividends collected by the bank   TZS 8,200/=

Required:

Prepare a bank reconciliation statement starting with balance as per bank statement. (Do not update the cash book)

SECTION C (40 Marks)

Answer two (2) questions from this section

7. (a)Majani and Master J enter into a Joint venture to share profit losses equally resulting from dealings in second-hand digital TVs, both parties taken an active role in the business, each recording his own transactions. They have no Joint Bank Account.

2021

July 1: Majani busy four TVs for a total of TZS __________ 110,000/=

July 3: Majani pays for repairs TZS _______ 84,000/=

July 4: Master J pays office Rent TZS 30,000/= and advertising TZS 9,000/=

July 6: Master J pays for Packing materials ________ TZS 3,400/=

July 7: Master J buys a TV in excellent condition for __________ TZS 60,000/=

July 31: Majani sells the five (5) TVS to various customers, the sales being competed on this date and totaling TZS 310,000/=

Required:

1. Show the relevant Accounts in the books of co-ventures
2. Memorandum joint venture account

(b) Given the table below;

Prepare 

1. Provision for bad debts account
2. Income statement
3. Statement of financial position

8. On 6^th June 2020, Bagamerchant in Congo sent a consignment of 500 cases of goofs to Kungu, his agent in Babati Tanzania. The goods had Baga TZS 4000/= per case and paid transport and insurance amounted to TZS 50,000/=

Baga’s Accounting period ended on 31^st December 2020, and Kungu sent him an Interim Account sales made up to that date. It was disclosed that 400 cases had been sold for TZS 6000/= per case and import duty TZS 192,000/= and distribution expenses TZS 20,000/= had been paid. Commission at 5% on sales plus 2% Del-credere was charged.

On 10^th March 2021, Baga received the final Account sales showing that the remainder of the consignment had been sold for TZS 5000/= per case, distribution charges TZS 32,000/= had been paid and a commission was deducted. A cheque was enclosed for the Balance of Baga.

Required:

1. Prepare necessary accounts in the books of Baga for year 2020 and 2021.
2. Account sales

9. Marenga company ltd was formed on 1^st January 2015 and the following information is available for its first four years of operation

2015: Bought motor car costing shs 2,000,000 on 1.7.2017

2018: sold motor car which was bought for sh 6,000,000 on 1.1.2015 for the sum of 3,000,000 on 30^th September 2018

Marengacompany ltd depreciates its motor car at the rate of 10% per annum, reducing balance method for each month of ownership. The accounting period for the company ltd endes in December each year.

Required

For each of the year 2016, 2017 and 2018, prepare the following accounts/statements 

1. Motor car account
2. Provision for depreciation account
3. Disposal account
4. Income statement
5. Statement of financial position