TOPICAL EXAMINATION

BANK RECONCILIATION

SECTION A

1. Choose the most correct answer from the given alternatives

(i) _____ is the statement which shows the accounts beginning and ending balances, cash receipt and cash payment.

1. Income statement
2.  Bank statement
3. Statement of financial position
4.  Audit statement.

(ii) Calculation comparing the cash book balance and bank statement balance is called?

1. Bank reconciliation statement
2.   Bank statement
3.  Income statement
4. Comparison statement

(iii) A cheque which returned by bank without being paid 

1.  State cheque
2.  Dishonored cheque
3.   Un presented cheque
4. Cross cheque

(iv) An order made to the bank by account holder to make regular payment

1. Standing order
2.  Common order
3. Bank order
4.  Ordinary order

(v) Amount of money charged by bank for services it renders to customers

1. Deposit fee
2.   Pay in fee
3.   Bank charges
4. Drawing fee.

(vi) Cheque received by bank but not credited to customers account because not yet cleared:

1. Stale cheque
2. Uncredited cheque
3.  Un presented cheque
4.  Dishonored cheque

(vii) Un presented cheque means:-

1. Cheque drawn and paid by the bank
2. Cheque drawn but not yet presented to the bank for payment
3. Cheque received by bank but not yet credited
4.  Cheque which is outdated.

SECTION B

Answer the following questions:

2. Name the reasons for disagreement between cash book balance and bank statement balance.

3. What are the causes of cheque being dishonored?

4. There are two methods of preparing bank reconciliation statement. Name them.

5. Prepare bank reconciliation statement from the following information.

Balance as per cash book    6780

Un presented cheque     2560

Direct transfer      560

Un credited cheque     1150

Cash at bank as per bank statement   8750

6. 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.

(i) Cheques not presented for payment Tshs. 12,340/=

(ii) Cheques paid into bank but not credited by the bank 12,340/=

(iii) Items shown in the bank statement but not yet entered in the cash book.

a)  Bank charges   240/=

b)  Standing order   460/=

c) 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.

7. Given the cash book and bank statement below. Prepare a bank reconciliation statement 31^st Dec. 1995.

 BANK STATEMENT.

1.  Unpresented cheque
2.  Un credited cheque
3.  Credit transfer
4. Bank charges.

8. From the following information, draw up bank reconciliation statement of W. Maneno as on 31 Dec. 1998.

Balance as per bank statement 15510

Balance as per cash book 18630

The following adjustment must be made before drawing up the bank reconciliation statement.

a)    Two cheques amounting Tshs. 4270 had not yet been credited by the bank.

b)     A cheque amounting to Tshs. 1150 had not yet been presented to the bank for payment.

9. On 31 Dec. 2008 N. Traders cash book balance showed a debit balance of Tshs. 420,000/= and bank start showed a credit balance of Tshs 396,000/=

The following transaction did not appear in the bank statement.

(i)   A cheque to Ngesa Tshs. 104,000

(ii)Cheque received from Nangesa Tshs. 100,000/=

The items which did not appear in cash book:-

(i)  Bank charges   18,000/=

(ii)    Bank interest received  15,000/=

(iii)   Cash paid directly into a bank account Tshs. 120,000/=

(iv)  Standing order telephone charge Tshs. 145,000/=

Required to:-

a)   Adjust the cash book to show the correct balance

b)      Prepare bank reconciliation statement as at 31 Dec. 2008 by using balance as per bank statement. 

10. The following is the cash book bank column of F. King for December, 2007

 Bank statement for the month.

You are required to:-

a)  Write the cash book up to date to take the necessary items into account

b)  Draw up the bank reconciliation statement as on 31 Dec. 2007

TOPICAL EXAMINATION

CORRECTION OF ERROR

SECTION A

1. Choose the most correct answer form the given alternative

(i) _______ is the mistake which affect the results.

1. Data
2. Error
3.   Transactions
4.   Wrong entry

(ii) Error which occur when transactions is completely omitted from the books of account

1.  Clerical error
2.   Additional error
3.    Error of omission
4.     Divisional error

(iii) Error which occur when a book keeper post a transaction in a wrong class of account.

1.  Error of principle
2. Error of omission
3.   Error of commission
4.    Error of original entry

(iv) An errors which are found in the books of accounts and that they can cancel each other in the account

1.  Compasating error
2.  Error of principle
3.  Complete reversal error
4.   Error of principle

(v) A credit purchase from Onyango worth Tshs. 98,600 has been recorded in the books as Tshs. 96,800. This is error_____________

1. Of principle
2.   Of compasation
3.  Of original entry
4.   Of complete reversal.

(vi) ______ is an imaginary account created to bring the balances of trial balance into agreement

1.  Personal account
2.    Nominal account
3.  Suspense account
4.  Real account.

(vii) Which of the following is not error of principle?

1. Motor expenses entered in motor van account
2.   Purchase of machine entered in purchase account
3.    Sales of Tshs. 250,000 to Philip completely omitted from the books
4. Sales to shose entered to Shakila account.

(viii) Error is corrected through journal because?

1. It save book keeper time
2.  It saves entering them in the ledger
3.  It is much easier to do
4.   It provides a good record explaining the double entry record.

(ix) If Tshs. 500,000 was accidentally added to purchases account instead of being added to a fixed asset, what would be the effect?

1.   Net profit only would be understated.
2.  Net profit only would be overstated
3.  It would not affect net profit
4. Both gross and net profit would be understated.

(x) If a trial balance does not agree the difference must be entered in______

1. The profit and loss account
2. A suspense account
3.  A normal account
4. The capital account

(xi) What happen if the balance on a suspense account is of material amount?

1.  Write it off to profit and loss account
2. Find an error
3. Write it off to the balance sheet
4. Carry forward the balance to the next period

SECTION B:

Answer all questions in this section.

2. Name the two types of error 

3. With one example each, explain the types of error which do not affect the trial balance.

4. Write short notes on the following.

(i)   Suspense account

(ii) Error which affect the trial balance.

(iii)  Narration

(iv) Journalizing.

5. Show the journal entries to correct the following types of error:-

(i)  Sales of goods Tshs. 6000 to Alan has been entered in Alhaji’s account.

(ii)    Purchase of machine on credit from Komango for Tshs. 400,000 was completely omitted from the books of accounts.

(iii)   Purchase of motor van for Tshs. 3,000,000 had been entered in the motor expenses account.

(iv) Commission received Tshs. 200,000 had been entered in error to sales account.

(v)  Sales of good on credit to Masaku for Tshs. 200,000 is debited to sales account and credited to Masaku account.

6. Show how each of the following errors would affect the trial balance agreement.

(i)     Repair of machine amounting 100,000 had been changed to machinery account.

(ii)  Closing stock overstated by Tshs. 200,000

(iii) A cheque form Masue of Tshs. 470,000 was credited to Masuki account.

(iv)   Commission Tshs. 300,000 received was debited to sales account.

(v)   A cheque of Tshs. 300,000 paid to Hadija entered in cash book but not in personal account.

7. The trial balance shows the following balances as 31 Dec. 2015.

 Dr. balance    670,000/=

 Cr.  Balance   450,000/=

 Required to:-

•   Prepare corrected trial balance using suspense.
•   Prepare suspense account

8. What are the causes of errors which affect the trial balance?

TOPICAL EXAMINATION

GOVERNMENT ACCOUNTING

SECTION A

1. Choose the most correct answer from the given alternatives

(i) A system of account adopted by the Government of United Republic of Tanzania:-

1. Government account
2.  Exchequer and audit
3.   Double entry system
4. Single entry system.

(ii) A system of recording, classifying, analyzing, summarizing and communicating the financial transaction of Government:-

1.  Government book keeping
2.    Governmenting
3.     Government accounting
4.  Accounting.

(iii) The parliamentary financial committee

1.   PAC and LAAC
2.  PAC and C.A.G
3.   LAAC and PMG
4.    C.A.G and P.M.G

(iv) Government account at B.O.T.

1.   Exchequer account
2.   B.O.T Account
3. Accumulated fund account
4.  Contra bank account.

(v) A balance at any time remaining to the credit of Exchequer account

1.  Debit balance
2.  Consolidated fund
3.   Special fund
4.  Contingency fund

(vi) A person who has been appointed in writing by treasury and charged with a duty of collecting and accounting for specific item of revenue:-

1. Personal secretary
2.  RC
3.   Receiver of Revenue
4.  Accounting officer

(vii) A standing committee of National assembly which examine the Audited statements of accounts of central Government in the light of the Annual audit report of C.A.G

1. PAC
2.  LAAC
3.   Audit committee
4.  Discipline committee

(viii) A branch of Government account that deals with accounting of the local authorities

1.  Local government accounting
2.   Local government authority
3. Central government accounting
4.   Branch accounting

(ix) A group of people who are related to each other:-

1.  Brothers
2.  Family
3.  Child
4. Sisters

(x) A maximum amount of money accounting office can spend:-

1. Ambit of vote
2.  Vote
3. Warrant of fund
4.  Vote amount

(xi) Government money for the benefit of the entire citizen in a country.

1.  Public money
2.  Citizen money
3.  Parliamentary money
4.  Special fund

(xii) A separate fund which is controlled by the accounting officer

1.  General fund
2.  Vote
3.  Supplementary fund
4. Controlled fund

(xiii) Officers who are re – allocated funds by accounting officer

1.   Member of Parliament
2.   Receiver of revenue
3. Warrant holder
4.              Accounting officer

(xiv) Accounting manuals written by the minister responsible for the local government which act as guide on how financial transactions of the local authorities should be handled:-

1. Warrant of fund
2.   Supplementary memoranda
3. Financial memoranda
4.  General memoranda.

(xv) A person who has been appointed in writing by treasury and charged with a duty of accounting for any services upon which money has been appropriated by National Assembly:-

1.   Controller and Auditor General C.A.G
2.  Receiver of Revenue
3.  Pay master General
4.    Attorney General.

SECTION B:

Answer all questions in this section

2. Write short notes on the following:-

(i)                 Appropriation act

(ii)               Treasury

(iii)            P.M.G

(iv)             C.A.G

(v)               Government accounting year

(vi)             Nugatory expenditure

(vii)                 Fiduciary fund

(viii)              Authorized officer

(ix)             Accrual basis accounting.

3. Differentiate Government accounting and Commercial accounting.

4. What are the objectives of Government accounting?

5. Name the duties of C.A.G.

6. Name the two types of Government Expenditure

7. With three examples, each names the sources of Government Revenue.

8. Explain how Government spend money

9. Distinguish capital and revenue expenditure estimate.

10. What are the similaries between Government Accounting and Commercial accounting?

11. Whoare accounting officers? Give two examples.

12. Define the following by giving two examples per each:-

(i)    Recurrent Revenue

(ii)  Recurrent Expenditure

(iii) Development Revenue

(iv) Development Expenditure.

13. What are the duties of:-

(i)   P.M.G

(ii) Warrant holder

(iii)Receiver of Revenue

(iv) Sub collector of Revenue

(v)   LAAC.

TOPICAL EXAMINATION

PETTY CASH

SECTION A

1. Choose the most correct answer from a given alternatives

(i) A book in which cash received and cash paid are recorded;

1.   Cash a/c
2.    Sales ledger
3.  Cash book
4.  Receipt and payment a/c

(ii) A situation which occur when cash float is more than expenditure

1. Cash float
2.  Cash average
3.  Cash shortage
4.   Cash payment.

(iii) A document used by petty cashier for petty payments

1. Payment voucher
2.  Cash book
3.  Cash voucher
4. Cash receipts.

(iv) Amount of money given to petty cashier for minor expenditure

1. Cash money
2.   Cash float
3.  Cash shortage
4.  Cash average

(v) A situation in which cash float is less than expenditure

1.  Cash average
2.  Cash shortage
3.  Deficit
4. Over payment

(vi) A person who supplied money by cashier for minor payments.

1.  Small cashier
2.  Petty cashier
3.  Accountant general
4.  Accounting officer

(vii) A book which petty cash receipt and payment are recorded

1. Petty cash book
2.   Analytical book
3. Cash book
4.  Sales day book

(viii) Bank account and cash account in one book

1.   Single column cash book
2. Two column cash book
3.  Three column cash book
4. Petty cash book.

(ix) It resemble cash book

1.  Sales a/c
2. Purchases a/c
3.  Cash a/c
4.   Discount a/c

(x) The left hand side of the cash book:-

1. Payment side
2.  Receipt side
3.   Debit side
4. Credit side

(xi) When double entry is completed in cash book

1.  Del credere
2.   Contra entry
3.  Contradiction
4.  Principle

(xii) Payments of frequent occurrence and of small amount

1. Petty payment
2. Minor payment
3.  Major payment
4.  Frequent payment

(xiii) A special voucher designed for petty cash payment

1. Special voucher
2. Petty cash voucher
3.   Petty cashier
4. Petty payment

(xiv) An allowance given to customers to encourage them to pay their account promptly

1. Deduction
2.  Cash discount
3.  Trade discount
4.  Discount received

(xv) There are two types of cash discount, namely:

1. Small cash discount and large cash discount
2.  Minor cash discount and major discount
3.   Discount allowed and discount received
4.  Discount paid and discount of rejected.

(xvi) When a firm takes money out of bank than what has paid in

1. Bank charges
2.  Bank interest
3.  Bank overdraft
4.  Bank statement.

SECTION B: 

2. Write short notes on the following:-

(i)    Petty cash

(ii) Imprest system

(iii)   Cash float

(iv) Cash book

(v) Three column cash book

3. What are the payments are made through the petty cash?

4. Draw the following:-

(i)  Single column cash book

(ii)   Two column cash book

(iii)     Three column cash book

(iv)   Petty cash book

5. Mama Chausiku started a business on 1^st January 2013 with capital worth Tshs. 500,000/=

 During January the following transaction took place:-

Jan. 2: purchases goods for cash Tshs. 10,000

Jan. 3: bought goods for cash Tshs. 50,000

Jan. 4: paid wages in cash Tshs. 5,000

Jan. 5: Sold goods for cash Tshs. 30,000

Jan. 6: bought goods for cash Tshs. 80,000

Jan. 8: bought packing materials cash Tshs. 30,000

Jan. 10: paid transport charges for cash Tshs, 30,000

Required to: Record the above transaction in Mama Chausiku’s single column cash book.

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 three column cash book from the following information.

        Tshs.

 1^st May   Balance b/d  cash   2900

    Balance b/d bank   65,400

 Debtors     Tshs.

 K. Chanda    12,000

 S. Ayubu    28,000

 R. Magu    4,000

 Creditors:

 T. Akyoo    6,000

 L. Moiro    44,000

 J. Kikoy    10,000

 2^nd May – K – Chanda paid us by cheque deducted 2% cash discount Tshs. 120

 8^th May – We pay J. Kikoy his account by cheque deducting 10% cash, discount 1,000

 11^th May – We withdrew Tshs. 10,000 from the bank for business use

 16^th May – S. Ayubu paid his account by cheque deducting 2% discount 560

 25^th May we paid wages in cash 9,200

 28^th May R. Magu paid us his account by cheque deducting 5% cash discount.

 29^th May - We pay T. Akyoo by cheque less 10% discount.

 30^th May – We paid L. Moiro by cheque less 2½% cash discount.

8. Jamali a sole trader keeps his petty cash on imprest system and the imprest amount is Tshs. 500,000. The petty cash transactions for February 1997 were as follows:- 

Jan. 1: Petty cash in hand Tshs. 46700

Jan. 1: Petty cash restored to imprest amount

Jan. 3: paid wages Tshs. 87600

Jan. 7: purchased postage stamps Tshs. 29400

Jan. 10: paid wages Tshs. 91100

Jan. 14: purchased envelops Tshs. 22800

Jan. 17: paid wages Tshs. 88400

Jan. 20: Paid cash to Jamila a creditor Tshs. 41600/=

Jan. 22: purchases stationery Tshs. 27500/=

Jan. 24: paid wages Tshs. 84800/=

 Required to: Prepare Jamali’s petty cash book on January 1997. Analysis column should be wages, stationery, postage and ledger.

9. Write a short notes on the following:-

(i) Three column cash book

(ii)  Discount

(iii)  Trade discount

(iv)  Cash discount

10. Name the types of cash discount.