THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCILCERTIFICATE OF SECONDARY EDUCATION EXAMINATION
062 BOOKKEEPING
(For Both School and Private Candidates)
Time: 3 Hours Monday, 12thNovember 2018 p.m.
Instructions
This paper consists of sections A, B and C with a total of seven (7) questions.
Answer all questions.
Calculators, cellular phones and any unauthorised materials are not allowed in the examination room.
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) - (x), choose the correct answer from among the given alternatives and write its letter beside the item number in the answer booklet provided.
(i) Which of the following should be entered in the Journal?
Payment for cash purchases
Fixtures bought for cash
Credit sales of goods
Sale of surplus machinery
Goods sold for cas
Choose Answer :
(ii) Errors are corrected through the journal because
it saves the book-keeper’s time.
it saves entering them in the ledger.
it is much easier to record entries in the journal.
it shows assets in the credit side and liabilities in the debit side.
it provides a good record explaining the double entry system.
Choose Answer :
(iii) If the totals of a trial balance do not agree, the difference must be entered in
the trading account.
a suspense account.
a nominal account.
the capital account.
the profit and loss account.
Choose Answer :
(iv) Given the opening accounts receivable of TZS 115,000, sales TZS 480,000 and receipts from debtors TZS 450,000, the closing accounts receivable total should be
TZS 85,000
TZS 145,000
TZS 163,000
TZS 185,000
TZS 30,000
Choose Answer :
(v) In a sales ledger control account the bad debts written off should be shown as
a debit and credit items.
a debit item.
a credit item.
a balance carried forward.
a balance brought forward.
Choose Answer :
(vi) Prime cost is obtained as a result of
cost of raw materials used plus direct wages and factory overhead cost.
cost of raw materials used plus direct wages.
factory overhead cost plus direct wages.
factory cost of goods manufactured less cost of raw materials used.
cost of raw materials used less factory cost of goods manufactured.
Choose Answer :
(vii) X and Y are partners in a partnership business sharing profit and losses at the ratio of 1:3 respectively. Their net profit at 31/12/2017 was TZS 500,000, how much profit will each partner earn?
166,667:333,333 respectively
333,333:166,667 respectively
375,000:125:000 respectively
125,000:375,000 respectively
250,000:250,000 respectively
Choose Answer :
(viii) If someone owns a grocery store, which of the following is a capital expenditure?
Rent
Wages
Salaries
Fire insurance
Motor van
Choose Answer :
(ix) Which of the following is a liability?
Loan from J. John
Buildings
Accounts receivable
Work in progress at the end
Closing stock of finished goods
Choose Answer :
(x) Which of the following is an example of recurrent expenditure?
Licence fees from the client
Salaries and allowances of staff
Office maintenance cost
Licence fees payable
Taxes payable
Choose Answer :
2.Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number in the answer booklet provided.
COLUMN A
COLUMN B
(i) It is the main book of accounts.
(ii) It contains debtors’ accounts.
(iii) It contains creditors’ accounts.
(iv) It contains the real and nominal accounts.
(v) It contains cash and bank accounts.
(vi) It contains capital and drawings accounts.
(vii) It is used to record credit sales.
(viii) It is used to record credit purchases.
(ix) It is used to record the payment of small amounts of money by a business.
(x) It is used to record business transactions that are not journalised in any of the other journals.
(b)show how the following transactions should be recorded in the ledger accounts by writing the name of the account to be debited and credited for each transaction:
Transaction
Account to be debited
Account to be credited
(i) Started business putting cash into a business bank account.
(ii) bzought machinery on credit from Unique Machines Traders.
(iii) Withdrew cash from the bank and placed it in the cash box.
(iv) Bought a second hand motor van paying in cash.
(v) Sold some of the machinery on credit to B. Brothers
5.The trial balance extracted from the books of Maji Meupe on 31st December, 2017 showed debit totals of TZS 491,400 and credit totals of TZS 440,400. The trading profit and loss account drawn up on the basis of this trial balance revealed a gross profit of TZS 143,000 and a net profit of TZS 36,000. A careful re-examination of his books revealed the following errors:
(i) Sales day book was overcast by TZS 10,000.
(ii) Goods costing TZS 8,000 had been taken by Maji Meupe for his personal use. No record was made of this fact.
(iii) Cash discount amounting to TZS 6,000 allowed by a creditor was debited to discount allowed account.
(iv) A payment of TZS 5,000 for carriage on sales was debited to carriage inwards account.
(v) A balance of TZS 1,000 in the personal account of M. Migire, a debtor, was not included in the list of total debtors on the trial balance.
(vi) During the year Maji Meupe sold his private farm for TZS 50,000 and paid in the proceeds to the firm’s bank account. This fact was only recorded in the cash book.
(vii) A new warehouse was built at a total cost of TZS 50,000, including materials costing TZS 35,000 and labour TZS 15,000. Materials used were journalised through purchases book and the wages paid were debited to ordinary wages account.
(viii) No record has been made for goods valued at TZS 14,000 taken by the proprietor, Maji Meupe for his personal use.
(ix) Goods costing TZS 25,000 purchased from Azam had been credited to Azania’s personal account.
6. Essau, Chuwa and Linus are in partnership sharing profits and losses in the ratio of 3:2:1 respectively. The following is a trial balance of the partnership as at 31st December, 2017.
Details
Dr.
TZS
Cr.
TZS
Capital accounts:
Esau
Chuwa
Linus
Current Accounts:
Esau
Chuwa
Linus
Bank balance
Debtors
Bad debts provision 1st January, 2017
10,000
50,000
460,000
360,000
240,000
120,000
14,000
6,000
20,000
Creditors
Provision for Depreciation 1st January, 2017
Land and buildings
Motor vehicles
Drawings:
Esau
Chuwa
Linus
Land and building at cost
Motor vehicle at cost
Office expenses
Purchases
Rates
Sales
Selling expenses
Stock on 1st January, 2017
80,000
60,000
60,000
1,20,000
400,000
80,000
1,700,000
80,000
280,000
400,000
700,000
240,000
160,000
3,000,000
4,860,000
4,860,000
The following information was also provided:
(i) Stock at 31st December, 2017 TZS 600,000.
(ii) Non-current assets are written off at the following rates: Land and buildings at 5% per annum on cost and Motor vehicle at 20% per annum on cost.
(iii) Rates prepaid at 31st December, 2017 TZS 40,000.
(iv) Bad debts amounting to TZS 10,000 were written off and bad debts provision to be adjusted to 5% of the outstanding debtors at 31st December, 2017
(v) At 31st December, 2017 TZS 35,500 was outstanding in respect of selling expenses.
(vi) According to the partnership agreement:
Linus is to get a salary of TZS 120,000 per annum. Interest of 10% per annum is to be allowed on the partner’s capital accounts. No interest is to be allowed on partner’s current accounts and no interest is to be charged on partners drawings.
Using the information provided, prepare:
(a) Partners Trading, Profit and Loss Appropriation Accounts for the year ending 31st December, 2017
(b) Partners’ Current Accounts for the year ending 31st December, 2017 and bring down the balances at 1st January, 2018.
7.Manyama Bwire keeps his books on a single entry system.
31.12.2016
31.12.2017
Club furniture
100,000/=
120,000/=
Stock
60,000/=
20,000/=
Debtors
120,000/=
140,000/=
Prepaid expenses
40,000/=
Creditors
40,000/=
?
Outstanding expenses
12,000/=
20,000/=
Cash
22,000/=
6,000/=
Receipts and payments during the year were as follows:
Receipts from debtors
420,000/=
Payment to customers
200,000/=
Carriage inwards
40,000/=
Drawings
120,000/=
Sundry expenses
140,000/=
Furniture purchased
20,000/=
Other information:
There was a considerable amount of cash sales. Credit purchases during the year amounted to TZS 230,000. Provide for doubtful debts to the extent of 10% on debtors.
From the information provided, prepare:
(a) Trading, Profit and Loss Accounts for the year ending 31st December, 2017.
(b) Total Debtors and creditors Control accounts as well as Cash account.
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