THE UNITED REPUBLIC OF TANZANIA PRESIDENT’S OFFICE

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TREE MID TERM TEST MARCH-2023

033/1 BOOK-KEEPING

Time: 3 Hours        MARCH, 2023

Instructions

1. This paper consists of three sections A, B and C with a total of 9 questions.
2. Answer all questions in section A and B and only two (2) questions from section C.
3. Section A carries twenty (20) marks, section B forty (40) marks and section C forty (40) marks.
4. Non programmable calculators may be used.
5. Cellular phones, and other authorized materials are not allowed in the examination room.
6. Write your examination number on every page of your Answer booklet(s).

SECTION A (20 MARKS)

Answer all questions in this section

1. for each of the items (i)-(xv), choose the correct answer from among the given

Alternatives and write its letter beside the item number in the answer sheet provided

1. If sales is 20,000 and profit make up is 25%, determine the amount of cost price

1. 13,600
2. 12,000 
3. 16,000 
4. 12,900 
5. 20,600

2. Which book of prime entry records the sale or purchase of non-current Assets?

1. General journal 
2. Sales journal 
3.  Purchases journal 
4. Cash book 
5. Sales return day book

3. If cash sale amount to Tshs 100,000/= paid direct into the bank account, the correct double entry will be to

1.  Debit sales account and credit cash account by sh.100, 000
2. Debit cash account and credit bank account by sh.100, 000 
3. Debit bank account and credit sales account by sh.100, 000
4. Debit bank account and credit cash account by sh.100, 000
5. Debit sales account and credit bank account by sh.100, 000

4. How much is to be reimbursed if a petty cashier has spent Tsh.189,00/=while his cash float is Tsh.200,000/=

1. Tsh,11,000/= 
2. Tsh 389,000/= 
3. Tsh,189,000/= 
4. Tsh,200,000/= 
5. Tsh,21,000/=

5. Working capital is a term meaning.

1. The excess of current liabilities over current liabilities
2. The excess of the current assets over the current liabilities
3. the excess of the current assets over non-current liabilities
4. The excess of current assets over non-current assets.
5. The excess of non-current Assets over current liabilities

6. Natasha and Ndengwe share profits and losses in the ratio 3:2. Their partnership recorded net profits of shs. 1,400, interest on capital shs. 420, partners’ salaries shs. 100 and drawings shs. 280, Determine Ndengwe’s share of the profits.

1. TZS 840 
2. TZS 560 
3. TZS 464 
4. TZS 696 
5. TZS 506

7. From the following categories of errors, identify the category of errors which affect only one account

1. Casting errors
2. Errors of principle
3.  Errors of omission. 
4. Errors of original entry.
5.  Errors of commission.

8. In the business of C. Sangster, who owns a clothing store, which of the following is the capital expenditure?

1. Fixtures and New Van bought
2. Shop fixtures bought and wages of assistants
3. Wages of assistants and new van bought 
4. Wages of assistants and Petrol for Van
5.  Fixtures and salaries.

9. Manufacturing account is used to calculate:

1. Production cost paid in the year
2. Total cost of goods produced
3. Production cost of goods completed
4. Gross profit on goods sold
5. Prime cost of goods manufactured

10. Depreciation can be described as the : _______

1. Amount spent to buy a non –current asset
2. Salvage value of a non-current asset consumed during its period
3. Cost of the non-current asset consumed during its period
4. Amount of money spent replacing non-current asset
5. Cost of old asset plus new assets purchased

11. A bank reconciliation statement is a statement:

1. Sent by bank when the account are overdrawn
2. Drawn to verify cash book balance with the bank statement balance
3. Drawn up by the bank to verify the cash book
4. Sent by the bank to the customers when errors are made
5. Sent by the bank customers to the friends.

12. If two totals of trial balance do not agree, the difference must be entered in:

1. A real account
2. The trading accounts
3.  A nominal account
4. The capital account 
5. A suspense account

13. The accounting equation is expressed in the financial statement called:

1. statement of financial position
2. income statement
3. expenditure statement
4.  reconciliation statement
5. statement of change in equity

14. If we take goods for own use, we should

1. Debit drawings Account: Credit Purchase Account
2. Debit Purchases Account: Credit Drawings Account
3. Debit Drawings Account: Credit Inventory Account
4. Debit Sales Account: Credit Inventory account
5. debit inventory Account: Credit Drawing Account

15. if a partnership maintains a fixed capital account, then the partner’s share

of profits is:

1. Credited to the partner’s drawings account
2. debited to the partner’s capital account
3.  credited to the partner’s capital account
4. credited to the partner’s current account 
5. debited to the partner’s current account

2. For each of the items (i)-( v) match the narrations of bank reconciliation Items in column A with their corresponding names in column B by writing the letter of the correct response beside the item number in the answer sheet provided

SECTION B (40 MARKS)

Answer all questions in this section.

3. In 1991 Mr. Chipepeto bought a motor car for the cost value of sh.8, 000,000/= with the aim of assisting him in business. But three years later he decided to dispose it for a book value of sh.6,700,000/=

1. What is the term used to mean the difference between cost value and book value.
2. Outline four reasons that could be the causes for him to dispose the car for less than the cost value.

4. The DSM Rotary club, has provided you with the following information:-

Required: Prepare A Subscription account and Insurance account, clearly showing amounts to be transferred to income and expenditure accounts for year 2001.

5. Define the following terms

1. Discount received
2. Invoice
3. Discount allowed
4. Carriage inwards
5. Carriage outwards

6. (a) Mr. Kyamba wants to start a business, but before commencement he needs to learn book keeping. Outline five objectives for him to study book keeping.

(b) Briefly explain three types of a cash book.

SECTION C (40 MARKS)

Answer two questions only from this section.

7. Panguso& company limited own a manufacturing industry which had the following records for the year ended at 31st December 2007.

• Inventory at 1^st January 2007: 
• raw materials sh.760, 000
• Finished goods sh 360,000
• Purchases of raw material sh.420, 000
• Sales of finished goods sh.2, 490,000
• Factory Fuel & power sh.320, 000
• Royalty sh.500, 000
• Depreciation of works machine sh.88, 000
• Market value sh.1,800,670
• General office expense sh.10, 740
• Manufacturing wages sh.170, 000
• Inventory at 31 ^stDec 2007: raw material sh.900, 000
• Finished goods sh.580, 000
• Works in progress sh.734, 000

You are required to prepare

1. Statement of manufacturing costs for the year ended at 31 ^stDec 2007
2. Income statement for the year ended at 31.12.2007

8. XY Ltd provides for depreciation of its machinery at 20% per annum on cost; it charges for a full year in the year of purchase but no provision is made in year of sale/disposal.

Financial statements are prepared annually to 31^th December. 2015

• January 1 Bought machine ‘A’ 10,000
• July 1 Bought machine ‘B’ 6,000

2016

• March 31 Bought machine ‘B’ 8,000

2017

• October 7 Sold machine ‘A’ – proceeds 5,500
• November 5 Bought machine ‘D’ 12,000

2018

• February 4 Sold machine ‘B’ – proceeds 3,000
• February 6 Bought machine ‘B’ 9,000
• October 11 Exchanged machine ‘D’ for machine valued at 7,000

Prepare;

1. The machinery account for the period 1^st January 2015 to 31^st December 2018

2. The accumulated provision for depreciation on machinery account, for the period 1^st January 2015 to 31^st December 2018.

9. The financial of the GGM trading company ended on 30^th November 2014. You have been asked to prepare a total amount receivable and total amount payable for the draft final amounts. You are able to obtain the following information for the financial year the book of original entry.

• Total receipts from customers 600,570
• Total payment to suppliers 503,970
• Discount allowed to credit customer 5,520
• Discount received from credit suppliers 3,510
• Refund given to cash customers 5,070
• Balance in sales ledger setoff against balance in the purchase ledger 700
• Bad debt written off 780
• Increase in the allowance for doubtful debts 900
• Credit note issued to credit customers 4,140
• Credit note received from credit suppliers 1,480

According to the audited financial statement for the previous year account receivable and account payable as to 1^st December 2013 were 26,550 and 43,450 respectively

• Required;

Draw up the relevant total accounts entering end of year total for account receivable and account payable.

THE PRESIDENT’S OFFICE

MINISTRY OF EDUCATION AND VOCATIONAL TRAINING

MID TERM EXAMIATIONS

024 BOOK-KEEPING FORM THREE

Duration: 2:30 Hours

INSTRUCTIONS. 

• This paper consists of two sections A and B.
• Answer all questions in section A and only Four Questions in Section B

·  All writing must be in blue or black ink except drawing which must be in pencil.

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

·  Write your Examination Number at the top right corner of every page.

·  Show clearly all working for each question 

• This paper consists of section A, B and C.
• Use pencil to draw all the account
• Attempt all the question

SECTION A (10 MARKS)

MULTIPLE CHOICE 

Choose the correct answer from the alternatives given 

1) Depreciation is 

 a) The salvage value of fixed assets

 b) The amount spent to buy fixed assets

 c) The part of cost of the fixed assets consumed during its period of use by the firm

 d) The destroyed property

2) Which of the following is nominal account

 a) Bank a/c b) Furniture and fittings c) Motor vehicles a/c

 d) Motor vehicle running expenses 

 e) Bank overdraft

3) A firm bought a machine for shs. 50,000/= which had ascrap value of shs 5,000/= and 

 Useful life of 5 years. What would be the depreciation expenses if straight line method is used

 a) shs. 10,000/= b) shs. 11,000/= c) shs. 9,000/=

 d) shs. 5,000/= e) shs. 11,500/=

4. Which of the following is a liability 

 a) Premises b) We owe for goods d) Loan to Hamis

 d) Cash at Bank e) Depreciation

5. Gross profit is 

 a) excess of sales over sales returns c) Cost of sales plus net profit

 b) Sale less purchases d) Sales less cost of sales

6. Posting in book-keeping means

 a) Making the first entry of double entry transactions

 b) Entering items in a cash book

 c) Making entries in different books

 d) Making the second entry of double

7. When a customer returns goods previously sold to him, the shopkeeper will use a document 

 called 

 a) Invoice b) Credit note c) Pay-in-slip 

 d) Order note e) Debit note

8. Determine the amount of capital from the following: Premises shs. 20,000/= Loan to Shamir 

 Shs.17,000/= stock shs. 35,000/= Creditors shs. 5,000/= Loan from Kagose shs. 22,000/=

 a) shs. 50,500/= b) shs. 54,000 c) shs. 48,000

 d) shs. 45,500/= e) shs. 45,000/=

MATCHING ITEMS (10 MARKS)

9. Classify the following into nominal, real and personal account.

SECTION B (20 MARKS) 

10. Write short notes on the following 

a) Double entry

b) Return inwards

c) Carriage inwards

d) Working capital 

e) Journal 

f) Contra entry

g) Imprest system.

11. Given the following transactions below

 1990 January 1. Started business with capital shs. 5,000/=

 1990 January 3. Bought goods for cash 1,500/=

 1990 January 5. Paid wages in cash shs. 50/=

 1990 January 7. Sold goods for cash shs. 3,000/=

 1990 January 8. Bought calculator by cash shs. 420/=

 1990 January 10. Paid transport by cash shs. 430/=

 Required: Enter the above transaction in 

1. Cash account
2. Ledger
3. trial balance

SECTION C: (60 MARKS)

12. Enter the following transaction in the necessary ledgers
1^st January 1951 – sold goods to Matatizo Tele on credit shs. 7,400/=

 31^st January 1951, Matatizo Tele paid his account by shs. 5,800/=

13. Given the following bank statement of Bahatisha Co. Ltd

The following extracted of a cash book is also available.  

CASH BOOK (BANK COLUMN) 

Required: Prepare the bank reconciliation statement as at 31^st March 1998, starting with the 

 Balance as per cash book. (Do not adjust the cash book)

END