PRESIDENT OFFICE REGIONAL  ADMINISTRATION

AND LOCAL GOVERNMENT

SECONDARY EXAMINATION SERIES 

COMPETENCE BASED  ASSESSMENT

FORM ONE

MID TERM EXAMS-AUG– 2023

062     BOOK-KEEPING

Time: 2:00 Hours                             August, 2023

Instructions

1.                This paper consists of sections A, B and C with a total of nine (9) questions.
2.                Answer all questions.
3.                Sections carries fifteen (15) marks and B carries forty (40) marks and Section C carries forty-five (45) marks.
4.                All writings must be in blue or black ink.
5.                All answers A must be written in the spaces provided.
6.                Programmable calculators, cellular phones and any unauthorized materials are not allowed in examination room.

SECTION A (15 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 in the box provided:

1.            Form one students were arguing on which primary and basic objective of preparing a trial balance is. Which of the following uses is the basic purpose of preparing a trial balance?

1. A trial balance is used as a tool for preparing financial statements
2. A trial balance is used to check arithmetical accuracy of double entry
3. A trial balance is used to present a list of balances at one place
4. A trial balance is used to determine profit or loss of a business

2.             On 20^th July, 2023, Nathan, a sole trader purchased a machinery for cash paying TZS 3,500,000/=. What would be a double entry for this transaction?

1.               Debit: Cash account, Credit: Machinery account
2.               Debit: Purchases account, Credit: Machinery
3.               Debit: Machinery account, Credit: Purchases account
4.              Debit: Machinery account, Credit: Cash account

3.           The debit side of the cash account is used to:

1.               Record amount received in the business
2.               Record amount of capital
3.               Record amount paid out of the business                  
4.              Recording amount of goods sold on credit

4.           What is meant by book keeping?

1.               An art of recording business transactions
2.               An art of recording cash transactions
3.               An art of recording bank transactions    
4.              An art of recording credit transactions

5.             Which of the following is the objective of book keeping?

1.               Bridge the gap between buyer and seller
2.               Fair tax assessment
3.               Paying tax to the government     
4.              Creation of employment

6.           Posting the transactions in book keeping means:

1.               Making the first entry of double entry transaction
2.               Entering items in cash book
3.               Making the second entry of a double entry
4.              Recording a transaction once

7.         ______________ are the books under which the transactions are entered before being posted to their respective ledgers.

1.               Accounts
2.               Subsidiary books
3.               Cash books
4.              Ledger books

8.       “A company does not include the value of skills gained by its employees from training programs in its financial records.” Which accounting concept is applied?

1.               Dual aspect concept
2.               Matching concept
3.               Money measurement concept
4.              Business entity concept

9.           A subsidiary book that records transactions that owing to their nature are inadmissible to any other book of prime entry is:

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

10.              _________ is a principle of book keeping which calls for “every business transaction must be recorded twice:

1.               Journalizing
2.               Double entry
3.               Posting
4.              Trial balance

2.                Match the items in Column A with the responses in Column B by writing the letter of the correct responses below the corresponding item number in the table provided:

SECTION B (40 Marks)

Answer all questions in this section.

3.                Complete the following table by identifying the account to be credited and debited as well:

4.                Use the knowledge of accounting equation to fill in the gap in the following table

5.                Briefly describe the meaning of the following terms as used in book keeping

1.             Trial balance

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2.            Book keeping

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3.              Credit transaction

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4.            Sales day book

________________________________________________________________________________________________________________________________________________________________________________________________________________________

5.             Capital

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6.                Complete the table below by indicating whether the accounts are Nominal account, Real account or Personal account:

SECTION C (45 Marks)

Answer all questions in this section.

7.                MTUMZIMA, a wholesaler, made the following credit purchases during the month of April 2023:

April 1. Bought goods on credit from Matheo Store:

 10 Dozen of vitenge at TZS 80,000 a dozen

 25 Dozen of khanga at TZS 100,000 dozen

April 5. Credit purchases from Joshua Suppliers:

 12 Pairs of shoes at TZS 20,000 a pair.

 20 Pairs of boots at TZS 30,000 a pair

April 12. Credit purchases from Emelda Shop:

 70 Dozens of exercise books at TZS 30,000 a dozen

 10 Reams of papers at TZS 25,000 each.

April 22: Credit purchases from Nuzart Book store:

 20 Advanced leaner’s dictionaries at TZS 20,000 each.

 80 Fiction books at TZS 5,000 each.

Record above transactions in the Purchases journal for the month of April 2023.

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8.                On 1^st Jan 2023, Brayden started a business with Capital TZS. 200,000 in cash: 

       TZS

Jan 2: Bought gods for cash __________________________   25,000

Jan 3: Sold goods for cash ____________________________ 60,000

Jan 5: Purchased goods for cash _________________________20,000

Jan 8: Bought furniture for cash _________________________ 50,000

Jan 10: Paid advertising charges __________________________ 8,000

Jan 15: Sold goods for cash ______________________________ 72,000

Required:

Enter above transactions into a Cash Account, balance it and bring down the balance and complete a double entry

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________From the following list of balances of Mtumzima Traders, prepare a trial balance as at 31^st March, 2023.

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

COMPETENCY BASED SECONDARY EXAMINATION SERIES

FORM THREE EXAMINATION

062    BOOK-KEEPING FORM ONE

Time: 2:00 Hours 2022

Instructions

1. This paper consists of Section A, B and C with a total of seven (07) questions.
2. Answer ALL questions.
3. All writing must be in blue or black ink except all drawings which must be in pencil.
4. All answers must be written in the spaces provided.
5. All unauthorized materials are not allowed in the examination room.

SECTION A (15 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 in the box provided:

1. Goods returned to a business of TZS 40,000/= by Reginald are recorded in:

1. Purchases journal   
2. Purchases return journal
3. Sales journal 
4. Sales returns journal

2. Anna and Nathan were arguing on the primary and basic objectives of recording and keeping accurate financial information of daily business transactions in the books of accounts. Which one of the following is the objective of book-keeping in a business?

1. Bridge the gap between buyer and seller
2. Fair tax assessment.       
3. Paying tax to the government
4. Creation of employment

3. The debit side of a cash book is used to_________

1. 
   

   Record amount cash received in the business
2. Record amount of capital       
3. Record amount of cash paid out of the business                                             
4. Recording amount of goods sold or bought on credit

4. The act of recording transactions in any subsidiary books is called ________

1. Posting
2. Book keeping    
3. Accounting 
4.  Journalizing

5. The column in the account which is used to record pages of reference in the books of accounts is called:

1. Details   
2.  Amount   
3.  Folio
4. Particulars

6. Susan bought goods costing TZS 200,000 on credit from Luis Suppliers. Therefore, Susan is a:

1. Supplier 
2.  Creditor   
3.  Debtor  
4. Seller

7.    A systematic recording of business transactions is called __________

1. Book keeping      
2. Double entry

3. 
   

   Record keeping             
4.  Posting

8. The column where the description of a transaction is recorded in the books of accounts is called:

1. Details   
2. Amount   

3. 
   

   Folio                           
4. Particulars

9. Franklin wants to start up a business dealing with Clothing Wholesale Store, but he does not have enough capital to commence his business. The following can be used as the sources of capital for his business Except:

1. Money borrowed from bank
2. Money saved for business start up
3. Money saved for building a private house
4. Cash received from sale of a private car

10. If the Assets of the business amounted to TZS 85,000/= and Capital is TZS 60,000/= How much is the amount of Liabilities of the business?

1. TZS 45,000/=
2. TZS 145,000/=  
3. TZS 25,000/=                                                                            
4. TZS 85,000/=

2. Match the items in Column A with the responses in Column B by writing the letter of the correct response below the corresponding item number in the table provided.

SECTION B (40 Marks)

Answer all questions in this section.

3. Gailynn is an international businessperson who imports goods from various nations, last week she received two boxes of Electronic equipments from China. Upon serious investigation, she decided to return some of the equipments back to her supplier.

In five (05) outline the reasons for this to happen.

1.          ______________________________________________________________________
2.        ______________________________________________________________________
3.      ______________________________________________________________________
4.      ______________________________________________________________________
5.        ______________________________________________________________________

4.                                                                                                                                                                                       Mtumzima is a sole trader, owning a clothing wholesale store in Arusha. He is not knowledgeable of the source documents required to obtain the information which are used in preparation of the books of prime entry. Name five documents used as evidence of transactions in businesses.

1.          ______________________________________________________________________
2.        ______________________________________________________________________
3.      ______________________________________________________________________
4.      ______________________________________________________________________
5.        ______________________________________________________________________

5.                       Accounting conceptsare the fundamental rules, ideas and assumptions needed in accounting and book keeping. They are fundamental rules that must be followed while recording transactions in the books of accounts. A clear disclosure must be made in the financial records if these rules are not followed. List down five (05) accounting concepts used in book keeping.

1.          ______________________________________________________________________
2.        ______________________________________________________________________
3.      ______________________________________________________________________
4.      ______________________________________________________________________
5.        ______________________________________________________________________

6. Use the fundamental accounting equation to complete the table below:

SECTION C (45 Marks)

Answer all questions in this section.

7. Gladness Suppliersmade the following credit sales during the month of March 2022.

March11: Sold to Diana Shop:

4 cartons of mango juice TZS 5,000/= each

6 cartons of apple juice TZS 4,000/= each

 5 cartons of guava juice TZS 6,000/= each

March 22: Sold to Anneth traders:

10 pairs of socks TZS 3,000/= each

 5 pairs of sandals TZS 10,000/= each

March 27: Sold to Felix Shop:

6 bags of wheat flour TZS 10,000/= each.

4 buckets of cooking oil TZS 20,000/= each

Required:

Record above transactions into a Sales day book and post to the respective ledgers.

8.                Rachel traders made the following transactions during the month of April 2022:

2022

1^st April:          Returns from Merry stores:

                        6 bags of salt @ 5,000, under weight

                        20 bags of sugar @ 7,500, expiry

    10^th April:       Credit note from Nelson Suppliers:

                        5 boxes of cooking fats @ 17,000, Not suitable for consumption

                        10 pairs of sandals @ 65,000; wrong size

     16^th April:       Sales returns from Dyness shop:

                        20 pairs of bed sheets @ 30,000, wrong colour

50. T-Shirts @ 5,000; not up to sample ordered

Enter above transactions in the Sales returns day book.

9. Princess, a wholesaler, made the following credit purchases during the month of April 2022:

April 1. Bought goods on credit from David Store:

 10 Dozen of vitenge at TZS 8,000 a dozen

 25 Dozen of khanga at TZS 10,000 dozen

April 5. Credit purchases from Joshua Suppliers:

 12 Pairs of shoes at TZS 2,000 a pair.

 20 Pairs of boots at TZS 3,000 a pair

April 12. Credit purchases from Dainess Shop:

 70 Dozens of exercise books at TZS 3,000 a dozen

 10 Reams of papers at TZS 15,000 each.

April 22: Credit purchases from Star Book store:

 20 Advanced leaner’s dictionaries at TZS 2,500 each.

 80 Fiction books at TZS 500 each.

Record above transactions in the Purchases journal for the month of April 2022.