THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, LOCAL ADMINISTRATION AND LOCAL GOVERNMENT

BOOKEEPING- TERMINAL EXAMINATION-MAY

FORM THREE

TIME: 2½HRS                                                                  2020

NAME:______________________________CLASS:___________

INSTRUCTIONS

• Answer all questions

1. Choose the correct answer from the given alternatives write its letter beside the item number

(i) Which of the following is a liability?

1. Debtor
2. Loan from exim bank
3. Building
4. Prepaid expenses

 (ii) The cash payment of T.shs 439,000 to Juma would appear as follows:

1. Credit Juma account, credit cash account
2. Debit Juma account, credit cash account
3. Debit bank account, credit Juma account
4. Debit cash account, credit Juma account

 (iii) Which of the following are personal accounts?

1. Building and machine
2. Wages and salaries
3. Account receivable and account payables
4. Profits and loss

 (iv)In the trial balance, accumulated provision for depreciation account is

1. Shown as a credit item
2. Not shown as it is part of depreciation
3. Shown as a debit item
4. Sometimes shown as a credit, sometimes as a debit

 (v) Which of the following is not correct?

1. Assets – capital=liabilities
2. Liabilities + capital=assets
3. Liabilities + Assets=capital
4. Assets – liabilities =capital

 (vi) Which of the following should be charged in the trading, profit and loss account(income statement)

1. Office rent
2. Work-in-progress
3. Direct materials
4. Carriage on raw materials

 (vii) At the end of trading  period, bad debt account is closed and transferred to the

1. Balance sheet
2. Profit and loss account
3. Trading account
4. Allowance for doubtful debits account

 (viii) Revenue expenditure is

1. The extra capital paid in buying non-current assets
2. The extra purchase of goods for sale
3. Money spent on selling fixed assets
4. The cost inairred in running the business on a day to day basis

 (ix) An allowance made on the date of sales in respect of the date of payment is

1. Discount allowed
2. Cash discount
3. Trade discount
4. Quantity discount

 (x) If shs 1000/= was added to purchases instead of being added to a fixed asset

1. Net profit only would be understated
2. Net profit only would be overstated
3. Both gross profit and net profit would be understated
4. Both gross profit and net profit would be overstated

2. Match the following by choose the correct answer from column B and write its letter beside the item number in column A

 SECTION B

3. Write short notes on the following 

1. Capital expenditure
2. Bad debts
3. Depreciation of non-current asset
4. Manufacturing account
5. Single entry system

 4. Kibaha education centre had received house rent for 1982 amounting to sh. 72,000. Out of this amount shs. 4,000 related to the year ending December 1983.

Required:

Rent received account to show the amount transferred to the profit and loss account

SECTION C

5. Jangua started business on 1^st January 1993.  Purchases and disposals of machines over three years were as follows.

The machines are depreciated on straight line method using rate of 20% per annum

Required:

1. Machine account
2. Provision for depreciation account
3. Disposal of machines account

 6. K owns a store, her records are incomplete. You have been called in to prepare her accounts.

Through investigation the following information was obtained

                                                              01.01.2013               31.12.2013

Stock                                                     2,100                            2,240

Trade creditors                                        960                            1,000

Motor vans                                            1,200                           1,000

Debtors                                                1,300                           1,040

Rates pre-paid                                         80                                96

Cash at bank                                           900                           2,344

Additional information

Drawings during the year amounted to Tshs 120 per week

Legacy of Tsh.400 received on March 2013 had been paid into the business bank account 

Required

1. Statement of affairs at 1^st January 2013
2. Statement of affairs at 31^st December 2013
3. Statement of profit or loss for the year 2013

7. From the following prepare manufacturing, trading profit and loss account for the year ended 31.12.2013

Stock at 01.01.2013:

Raw materials                                        1,845,000

Work in progress                                    2,360,000

Finished goods                                      1,747,000

Purchases: raw materials                       6,430,000

Carriage on raw materials                       160,500

Direct labour                                         6,581,000

Office salaries                                       1,692,000

Rent                                                        270,000

Office lighting and heating                      576,000

Depreciation:

Works machinery                                       830,000

Office equipment                                       195,000

Sales                                                          20,060,000

Factory fuel and power                                592,000

Additional notes on 31.12.2013

Stock at 31.12.2013

Raw materials                                          2,021,000

Work-in-progress                                      1,739,000

Finished goods                                          2, 1488,500

Rent is to be apportioned as follows:

       Factory     (20) / (30)

       Office    (10) / (30)