PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

MID TERM TWO MIDTERM EXAMINATIONS

062 BOOK KEEPING

TIME: 2:30 HOURS March 2023

INSTRUCTIONS

1. This paper consists of section A, B and C with a total of nine (09) questions.
2. Answer all questions
3. Non programmable calculators may be used.
4. Cellular phones and any unauthorized materials are not allowed in the examination room.
5. Write your Examination Number on every page of your answer sheet(s).

SECTION A (15 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) Which of the following is not the objective of studying Book keeping?

1. To control business
2. To determine profit
3. To assure fair tax assessment
4. To provide opportunity for employment

(ii) Given a desired cash float of sh 20,000, if sh 14,600 are spent in the period, how much will be reimbursed at the end of the period?

1. Sh. 20,000
2. Sh. 5,400
3. Sh. 14,600
4. Sh. 25,400

(iii) A petty cash book is used for recording

1. Cash payments
2. Small payments
3. Bank payments
4. Small bank payments

(iv) The document used to deposit money in the bank account is known as

1. Bank statement
2. Pay in slip
3. Invoice
4. Payment voucher

(v) Which of the following best describe a trial balance?

1. It show financial position of a business
2. It is a list of ledger accounts balances
3. It is a list of non-current assets
4. It is a list of all ledger accounts

(vi) It is both a book of prime entry and part of ledger

1. Purchases journal
2. Sales journal
3. Journal
4. Cash book

(vii) What is meant by contra entry?

1. Cash is banked before it has been paid out
2. Double entry is completed within the cash book
3. The proprietor has repaid capital in cash
4. Sales have been paid by cash

(viii) The three column cash book records;

1. Cash transactions and cheque transactions
2. Cash transactions, cheque transactions and cash discounts
3. Cash transactions and credit transactions
4. Credit transactions and cash discounts

(ix) Which of the following statement is not a business transaction?

1. Payment of wages to a house girl
2. Payment of wages to a shop attendant
3. Receipts of cash against sale of goods
4. Purchases of fixed assets for the business

(x) Capital and drawings account are classified as;- 

1. Personal accounts
2. Nominal accounts
3. Real accounts
4. Proprietors accounts

2. For each of the items (i) – (x), match the descriptions of the terms used in Book keeping in Column A with their corresponding names in Column B by writing the letter of the correct response below the corresponding item number in the table provided

Answers

SECTION B (40Marks)

Answer all questions in this section

3. Why cash book and bank statement balances differs? Give five reasons.

4. Why buyers sometimes return goods to suppliers? Give five reasons 

5. Classify the following , whether are Real account, Nominal account or Personal account

6. Below are the Assets, Capital and Liabilities of Kazimoto Traders as at 31^st  December 2020

Required;

(a) From the above details mention:

(i) Fixed assets

(ii) Current assets

(iii) Current liabilities

(b) Calculate the amount of working capital

SECTION C (45Marks)

Answer all questions in this section

7. Revlon Company does not know how to prepare a proper trial balance. Its trial balance appeared in the books of accounts as at 31st December 2018 as follows:-

TRIAL BALANCE AS AT 31 DECEMBER 2012

Using the information above, prepare the correct trial balance as at 31^st December 2018

8. From the given balances, prepare the Journal Proper of Mrs. Godlove and ascertain her capital as at 31st December 2015

9. From the following transactions you are required to prepare the Sales day book. Posting to the ledger is not required.

May 1^st Sold to Mbasi & Sons Ltd

• 10 dozens of vitenge at 800/= a dozen
• 25 dozens of khanga at 1,000/= a dozen

May 5^th Sold to Mkubwa:

• 10 pairs of rubber shoes at 200/= a pair
• 20 pairs of boots at 300/= a pair

May 8^th Sold the following goods to Mayole Ltd:

• 60 bags of ammonium sulphate @ 680/=
• 50 rambo bags @ 120/= a bag

May 12^th Sold to Mbaya &Sons:

• 10 dozens stencil at 300/= a dozen
• 20 reams of dublicating paper at 150/= each

May 22^th Sold to Kadoda Book store:

• 20 advance Learner’s dictionaries at 250/= each
• 80 fiction books at 500/= each

PRESIDENT’S OFFICE

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

MID TERM ONE EXAMINATIONS 

 BOOK KEEPING

 FORM TWO 

       062                                                                      

TIME: 2:30 HOURS                                                      March    2022

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.

_

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.

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           

THE MINISTRY OF EDUCATION AND LOCAL GOVERNMENT

FORM TWO MID TERM EXAMINATION- MARCH 2020

062                                                                               BOOK KEEPING

Duration: 2:30 Hours

INSTRUCTIONS.

1. This paper consists of sections A, B and C with a total of seven (7) questions.
2. Answer all questions.
3. All writing must be in blue or black ink except drawing which must be in pencil.
4. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
5. Write your Examination Number at the top right corner of every page.

SECTION A (20 Marks)

Answer all questions in this section.

  (i) A list of debit and credit balances extracted from ledger is known as:-

1. Extracts
2. Transactions
3. Trial balance
4. Balance sheet.

(ii) Which of the following are not advantages of Trial Balance?

1. Help in checking arithmetical accuracy of the ledger entry
2. It shows personal Real and nominal a/c
3. Used in preparation of final accounts
4. Used for decision making by the owner and others.

(iii) ______ is not recorded in trial balance. It is shown in additional information.

1. Opening stock
2. Closing stock
3. Assets
4. Expenses

(iv) The two types of accounts are:-

1. Nominal a/c and Real a/c
2. Personal a/c Nominal a/c
3. Personal and impersonal a/c
4. Nominal and Real a/c

(v) Which of the following is not real account?

1. Building a/c
2. Furniture a/c
3. Debtors a/c
4. Stock a/c

(vi) A ledger comprises of customers accounts who bought goods on credit from business firm?

1. General ledger
2. Sales ledger
3. Purchases ledger
4. Private ledger

(vii) Which of these best describes a balance sheet?

1. A account providing the book balance
2. A record of closing entries
3. A listing of balances
4. A statement of assets.

(viii) The descending order in which current assets should be shown in the balance sheet in:-

1. Stock, debtors, bank, cash
2. Cash, bank, debtors, stock
3. Debtors, stock, bank, cash
4. Stock, debtors, cash, bank

(ix) Which of the following are personal accounts?

1. Buildings and creditors
2. Wages and debtors
3. Debtors and creditors
4. Wages and creditors.

(x) In which account is the net profit of the business determined?

1. Trading account
2. Profit and loss account
3. Cash account
4. Bank account

2. For each of the items (i) – (x), match the descriptions of the terms used in Book Keeping in List A with their corresponding names in List B by writing the letter of the correct response below the corresponding item number in the table provided.

Answers:

SECTION B (20 Marks)

Answer all questions in this section

3. Mention five users of accounting information.

1. ………………………………………………………………………………………..
2. ………………………………………………………………………………………..
3. ………………………………………………………………………………………..
4. ………………………………………………………………………………………..
5. ………………………………………………………………………………………..

4. Briefly explain the following terms:

            (a) Double entry book keeping system

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

(b) Account

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

(c) Discount received

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

(d) Debtors

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

(e) Current liabilities

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

SECTION C (60 Marks)

Answer all questions in t his section.

5. On 31 Dec. 2007 the cash book balance of Kamwene was Tshs. 25,370. Whereas the bank statement should credit balance. The following were discovered.

1. Cheques not presented for payment Tshs. 12,340/=
2. Cheques paid into bank but not credited by the bank 12,340/=
3. Items shown in the bank statement but not yet entered in the cash book.
4. Bank charges                           240/=
5. Standing order                                    460/=
6. Divided                                               850/=

Required to: 

• Adjust the cash book to show the correct cash book balance
• Prepare a bank reconciliation statement starting with adjusted cash book balance.

6. Jackson commenced a business on 1^st Jan. 2013. The following transactions were concerned:-

Jan. 1: commenced business with Tshs. 400,000 in cash

Jan. 2: purchase furniture by cheque 50,000

Jan. 3: purchased furniture by cash 300,000

Jan. 4: sold goods by cash Tshs. 40,000

Jan. 5: Paid electric bills by cheque 60,000

Jan. 6: paid advertising expenses 200,000

Jan. 7: paid wages 100,000

Jan. 8: sold goods paid by cheque 500,000

Jan. 21: paid transport by cash 60,000

Jan. 22: paid water bill by cheque 40,000

Jan. 23: sold goods by cheque 250,000

Jan. 24: bought goods by cheque 50,000

Jan. 28: bought goods by cash 40,000

Required to: Record the above transactions in two column cash book, balance off and bring down the balances.

7.  Prepare the balance sheet from the following information

Capital                                     14,000

Net profit                                6,000

Drawings                                 5,000

Creditors                                 2,000

Loan from NBC                      12,000

Bank over draft                       4,000

Machine                                  13,000

Motor vans                              4,000

Furniture                                 2,500

Premises                                  5,300

Stock                                       1700

Debtors                                   1500

Cash at Bank                           3,000

Cash in hand                           2,000