OFFICE OF THE PRESIDENT

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

SECONDARY EXAMINATION SERIES

FORM TWO TERMINAL EXAMINATION-MAY-2023

BOOK-KEEPING

062

TIME: 2:30Hours

Instructions 

1. This paper consists of section A, B and C with a total of nine (9) questions.
2. Answer all questions.
3. All answers must be written in the spaces provided.
4. All writings must be blue or black ink except drawings which must be in pencil.
5. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
6. Write your Examination Number on the top right of every page.

SECTION A (15 Marks)

Answer all questions in this section

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

1. After balancing all accounts, Mwangumi prepared a trial balance. He did this because of

1. Reducing errors in the double entry accounts
2. Indicating errors where they have occurred
3. Checking the arithmetic accuracy of double entry
4. Preventing errors and frauds in accounts.

2. Kabila, the owner of WATOTO WAVAE SHOP, separates his business transactions from his personal transactions. What accounting concept does he apply?

1. Historical cost
2. Going concern
3. Money measurement
4. Business entity

3. Suluhu started business last week and bought goods from various suppliers. He is now planning to return some goods to some of his suppliers. His decision may be due to

1. The goods were durable
2. The goods were so expensive
3. The goods were expired
4. The goods were perishable

4. When preparing statement of financial position, you have decided to arrange the current assets in their descending order. How will they be presented?

1. Inventory, trade receivables, bank, cash
2. Cash, bank, trade receivables, inventory
3. Trade receivables, inventory, cash, bank
4. Inventory, trade receivable, cash, bank

5. Kale has banked some of her business cash into the bank. What term is given to this transaction?

1. Double entry
2. Single entry
3. Contra entry
4. Two – sided entry

6. Mungiya is a sole proprietor of a retail shop. The capital of his business will decrease if:

1. His profit is equal to his capital
2. His drawings is bigger than his profit
3. His drawings is less than his profit
4. His profit is bigger than his capita.

7. The government has rented a house which is not used at all. What type of expenditure is this?

1. Recurrent expenditure
2. Capital expenditure
3. Development expenditure
4. Nugatory expenditure

8. After posting all transactions in their respective ledgers and balancing them, Mwakapala prepared a statement showing a list of balances on 30^th April, 2022. Which name is given to this statement?

1. Bank statement
2. Income statement
3. Trial balance
4. Final/closing statement

9. The amount of cash or stock taken from the business by Mwahija, a sole proprietor, for her personal use is termed as

1. Expenses
2. Income
3. Drawings
4. Asset

10. When recording transactions in the three column cash book, the memorandum column on the debit side will record

1. Cash received
2. Cash paid
3. Discount allowed
4. Discount received

2. For each items (i) – (v), match the descriptions of officers in government accounting and budgeting in List A with their corresponding names in List B by writing the letter of the response below corresponding item number in the table provided

SECTION B (40 Marks)

Answer all questions in this section

3. Mswahili is a very reluctant business owner. He claims that, preparing financial statements is wastage of time because they end up being used by the business owner himself. You as his closed friend, briefly explain to him to clear his claim. (five (5) points)

1. ________________
2. ___________________
3. _______________________
4. ___________________________
5. ______________________________

4. Binti Mabuluu is a sole trade. She sells and buys goods by cash and on credit. State the transactions that she will record in each of the following journals.

1. Sales journal
2. Returns inwards journal
3. Returns outwards journal
4. Purchases journal
5. Cash book

5. In your school, the form one students are not much competent entry e-records. You as a competent form two student , help them by using transactions indicated in the table below:

6. Khuwayriy operates a current account with Amana Bank. He has received a bank statement dated 30^th April 2022 from the bank. Surprisingly, he discovered that the balance in it is TZS 2,000,000/= while that shown in his cash is TZS 1,500,000/= Educate him on causes for this situation. (5 points)

1. ________________
2. ________________
3. ________________
4. ________________
5. ________________

SECTION C (45 Marks)

Answer all questions in this section

7. Bwana Mayowe has given you the following information concerning his cash transactions for the month of March, 2018

March 1 Cash balance 54,000debit, bank balance 150,000 credit

March 2 Received cheque from Kakulu 182,000 after deducting cash discount of 1,000

March 5 Withdrew 6,500 from bank for personal use

March 9 paid kato by cheque 5,200 after deducting 520 cash discount

March 12  Received 12,600 cash and 11,500 cheque from Kipchoge.

March 15 deposited 40,000 cash into bank

March 19 Bought a computer 60,000 and paid half amount by cheque on account

March 22 Paid stationery 14,800 cash

March 24 Sold some old furniture and received cash 7,500

March 28 Paid Exim Bank loan 15,000 by cheque

March 29 Withdrew 16,000 from bank for office use 

March 31  Paid salaries 2,000 cash and 35,000 by cheque 

Help Bwana Mayowe to record the above transactions in a suitable cash book and show the opening balances as at 1^st April, 2018

8. The following information were obtained from your school shop.

TZS

Stock a 1^st January 2018 ......................................... 3,249

Purchases ............................................................... 11,380

Sales ...................................................................... 18,462

Motor expenses ....................................................... 520 

Salarie ..................................................................... 150

Rent and rates .......................................................... 670

Insurance ............................................................... 111

General expenses ..................................................... 105

Premises .............................................................. 1,500

Motor vehicles .................................................. 1,200

Debtors .............................................................. 1,950

Cash at bank ....................................................... 1,654

Creditors ......................................................... 1,538

Cash in hands ................................................ 2,040

Drawings ........................................................ 895

Capital ......................................................... 5,424

Stock on 31^st December, 2018 .................... 2,548

As a form two book keeping student, use the relevant financial statements to determine.

1. School shop’s profit or loss
2. School shop’s financial position

9. Majigambo is a businessman, but he does not know well to record transactions. He committed many mistakes when recording transactions.

You as business studies student, use the knowledge of book keeping to draw the journal and show the corrections of the following mistakes made by Majigambo;

1. Sales of goods for 200,000 have been credited to motor vehicle accounts
2. Purchases of goods for cash 100,000 has not been entered in the ledger accounts.
3. Sales of goods on credit of 82,000 to Tunu were entered by mistake in Tuna’s account
4. Returns outwards of 117,000 to Chepesi were entered in both accounts as 171,000
5. A cash drawings of 32,000 was debited to the cash account and credited to the drawings account
6. Purchases of motor van by cash 89,000 was recorded in purchases account
7. Sales account was undercasted by 358,000

Note: (Narrations are not required)