FORM THREE BKEEPING MIDTERM-2 EXAMS

THE UNITED REPUBLIC OF TANZANIA, PRIME MINISTR'S OFFICE-RALG

FORM THREE SEPTEMBER MID–TERM EXAMINATIONS

062   BOOK KEEPING 

(For Both Private and School Candidates)

Time: 3:00 HoursYear: 2026 

Instructions

  1. This paper consists of sections A, B and C with a total of nine (9)questions.
  2. Answer all questions in sections in all sections.
  3. Section A carries fifteen (15) marks, section B forty (40) marks and section C carries forty five (45) marks.
  4. Non – programmable calculators may be used.
  5. Cellular phones and any unauthorized materials are not allowed in the examination room.
  6. Write your Name in Full on every page of your answer booklet(s).


SECTION A (15 Marks)

Answerallquestions in this section

1. For each of the items (i) – (x) choose the correct answer from among the given alternatives and write its letter besides the item number in the answer booklet(s) provided.

(i) Bad debt written off is transferred to income statement because it is:

  1. Expenses 
  2. Income
  3. Assets 
  4. Liabilities
  5. Profits

(ii) One of the following is recorded only on the creditors control account:

  1. Returns in wards 
  2. Returns out wards
  3. Discount allowed 
  4. Bad debts written off
  5. Dishonoured cheque

(iii) Which of the following is treated as current assets in the preparation of statement of financial position?

  1. Accrued expenses 
  2. Expenses paid
  3. Accrued income
  4. Prepaid income
  5. Income received

(iv) The balance on the receipts and payments is the balance on the:

  1. Income statement 
  2. Subscriptions accounts
  3. Expenses account 
  4. Cash or bank account
  5. Income and expenditure

(v) Which one of the following is not the importance of control account?

  1. Reliable financial position 
  2. Calculating missing figures
  3. Facilitate internal check 
  4. Identifying the errors
  5. Checking the arithmetical accuracy

(vi) In the income statement, the sales returns should be:

  1. Added to costs of goods sold 
  2. Deducted from sales
  3. Deducted from purchases 
  4. Added to sales
  5. Added to purchases

(vii) What is it meant by the term revenue expenditure?

  1. The extra capital paid by the proprietor
  2. Money spent on buying non-current assets
  3. The costs of running the business on day to day basis
  4. Money spent on painting non-current assets
  5. Money spent on adding the value of non-current assets

(viii) A lorry is bought for tzs 2,000,000 and depreciation is to be charged at 20% per annum on a reducing balance method. What will be the net book value of this machinery after two years?

  1. Tzs 400,000 
  2. Tzs 1,600,000
  3. Tzs 520,000 
  4. Tzs 320,000
  5. Tzs 1,280,000

(ix) Depreciation can be described as the:

  1. The amount spent to buy a non-current assets
  2. Salvage value of the non-current assets consumed during its period
  3. The amount of money spent to replace the non-current assets
  4. Costs of the non-current assets consumed during its period
  5. Costs of old assets plus new assets bought

(x) Machinery is bought for tzs 500000 and is expected to be used for five years with disposal value of 10000. Using straight line method, the amount of depreciation to be charged each year will be:

  1. Tzs 10000 
  2. Tzs 200000
  3. Tzs 500000 
  4. Tzs 98000
  5. Tzs 78000

2. Match the items in List A with their responses in List B by writing the letter of the correct response besides the item number in the answer booklet(s) provided.

LIST A

LIST B
  1. The ministry which has been generally vestedthe task of accounting for all governmentmoney
  2. A person appointedbythetreasury in writing and charged with the dutyofregulating funding issue from exchequer account
  3. Any person who is appointed in writingby accounting officer to authorize the expenditures for specific items of expenditures
  4. An account to which all governmentmoney collected from various sources are deposited
  5. An officer appointedbythepresident of United Republic of Tanzania for controlling and regulating the use of publicmoney
  1. Collector of revenue
  2. Authorized officer
  3. Treasury
  4. Accounting officer
  5. Consolidated fund
  6. Controller and Auditor General
  7. Warrant holder
  8. Exchequer Account
  9. Paymaster General

SECTION B (40 Marks)

Answer all questions in this section

3. Briefly explain the following accounting concepts and principles:

(a) Dual concept

(b) Business entity concept

(c) Going concern concept

(d) Historical cost concept

(e) Money measurement concept

4. There are some organizations which run their activities without the purposes of making profit. Although they do not make profit, they still have to maintain accounting records. Briefly describe five (5) sources of funds which are obtained by such organizations.

5. Mandela started his business on 1st January 2013 with a capital of tzs 450,000. On 31st December 2013 his position was as under: Tzs

Assets Tzs
Cash 99,000
Accounts receivable 75,000
Plant 48,000
Land and buildings 180,000
Furniture 50,000

He borrowed tzs 45,000 from his friend Samson on that date. He withdrew tzs 8,000 per month for his house hold purposes.

Required: Ascertain his profit or loss for this year ended 31st December 2013.

6. As per receipt and payment account for the year ended 31st December 2015, complete the following table by identifying the account to be credited and debited as well:

S/N

Transactions

Account to be debited

Account to be credited

(i)

Cash paid to Rahima



(ii)

A payment of rentbycash



(iii)

Sales of goods to Mtumzima



(iv)

Cash received from Julius



(v)

Purchased goods for cash



SECTION C (45 Marks)

Answer all questions in this section

7. The following records were extracted from the books of Swaumu MKK retailer for the period of one year ending 31st December 2009.

Dr Cash account Cr
1/1/2009 balance b/d 18,000 Cash paid to suppliers (creditors) 362,000
Cash from credit customers 480,000 Salaries 38,000
    Rent and rates 16,000
    Light and heat 4,000
    General expenses 34,000
    Drawings 24,000
    31/12/2009 balance c/d 20,000
  498,000   498,000
1/1/2010 balance b/d 20,000    

The following additional information is also available.

  31/12/2008 31/12/2009
Stock 40,000 54,000
Trade debtors 60,000 66,000
Trade creditors 40,000 42,000
Accrued light and heat 500 1,500
Prepaid rent and rates 2,000 3,000
Non-current assets 30,000 27,000

From the above information prepare Swaumu MKK Income statement for the year ended 31st December 2009, and a statement of financial position as at that date.

8. The following figures were extracted from the books of A B Ltd. For the month of June, 1992: Purchase’s ledger balances 1st June Dr 350

Particulars Dr/Cr Amount
Purchase’s ledger balances 1st June Dr 350
  Cr 18,460
Sales ledger balances 1st June Dr 47,600
  Cr 1,350
Credit purchases   39,400
Credit sales   68,940
Cash sales   20,600
Cash purchase   4,400
Returns in wards   2,500
Returns out wards   890
Receipts from credit customers   52,600
Payment to trade creditors   38,640
Discount received   4,750
Discount allowed   6,990
Bad debts written off   1,240
Interest charged to debtors   360
Debtors’ cheque dishonoured   870
Purchase’s ledger credits transferred to sales ledger   1,230
Purchase’s ledger balances 30th June Dr 480
Sales ledger balances 30th June Cr 1,690

Required:

From the above information, prepare the debtor’s ledger and the creditor’s ledger control accounts for the month of June, 1992.

9. On 31st Dec 2020 the cash book balance of Jesca was tsh 54,300 while bank statement received from his bank showed a balance of Tzs 92,400, also found that:

  1. During December, the bank had paid TZS 20,000 for a yearly contribution of Jesca, made to Iftikhary volleyball club as per his standing order. This amount appeared in the bank statement but not in the cash book.
  2. The bank had credited his account with TZS 3,600 interest and had collected on his behalf TZS 23,000 as dividend no corresponding entries were made in the cash book.
  3. A cheque of TZS 6,500 deposited into bank on 28th December 2017 was not cleared by the bank till after 31th December
  4. A cheque drawn and posted to credit by Tadei on 31th December 2017, TZS 38,000 was not presented for payment until 3rd January 2018.

Required:

  1. Adjust cash book
  2. Prepare a bank reconciliation statement starting with the balance as bank statement.

FORM THREE BKEEPING EXAM SERIES 280  

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FORM THREE BKEEPING EXAM SERIES 280  

PRESIDENTS OFFICE
REGIONAL ADMINISTRATIONS AND LOCAL GOVERNMENT
FORM THREE EXAMINATIONS
BOOK KEEPING
Time: 3:00 Hours August, 202 5
Instructions
Answer all questions.
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.
(i) Which of the following books of prime entry is used to record a list of goods sold on  credit?
A. The sales return day book
B. The purchases day book
C. The sales day book
D. The purchases return day book
E. The discount received book
(ii) When preparing a trial balance, what would result if sales made to Ramima sh. 57,000  are wrongly debited to Ramima account as sh. 75,000?
A. Debit column of trial balance will exceed credit column by sh. 75,000
B. Credit column of trial balance will fall by sh. 75,000
C. Debit column of trial balance will exceed credit column by sh. 18,000
D. Credit column of trial balance will exceed debit column by sh. 18,000
E. Debit column of trial balance will exceed credit column by sh. 57,000
(iii) Given balance as per cash book sh. 6,500, uncredited cheque sh. 1,500, bank charges  not yet entered in the cash book sh. 500 and credit transfer received by bank but not yet  entered in the cash book sh. 1,000. What will be the balance as per bank statement?
A. Sh. 7,500
B. Sh. 4,500
C. Sh. 8,500
D. Sh. 5,500
E. Sh. 6,500
(iv) Which of the following is BEST describes the meaning of ‘Purchases.’
A. Items bought
B. Goods bought on credit
C. Goods bought for resale
D. Goods paid for
E. Goods on transit
(v) In the income statement, the sales returns should be
A. Added to cost of goods sold
B. Deducted from purchases
C. Deducted from sales
D. Added to sales
E. Added to purchases.
(vi) A firm bought a machine for 50,000/= it expected to be used for 6 years and then  sold for the 5,000/=. What is the annual amount of depreciation if the straight-line  method is used?
A. 7,500/=
B. 7,000/=
C. 6,500/=
D. 6,750/=
E. 8,000/=
(vii) Which of the following expenditure the government receives no value?
A. Nugatory expenditure
B. Recurrent expenditure
C. Statutory expenditure
D. Development expenditure
E. Recurring expenditure
(viii) From the point of view of your business, which of the following is a liability?
A. A car bought on credit
B. A house bought by cash
C. Cash received from a debtor
D. Bank overdraft
E. Cheque given to Mr. Popo
(ix) Which of the following are the examples of revenue expenditures?
A. Purchases of goods and payment for electricity bill in cash
B. Repair of van and petrol costs of van
C. Buying machinery and paying for installation costs
D. Electricity costs of using machinery and buying van
E. Buying van and petrol costs for van
(x) Which one of the following would not be taken into account when calculating
working capital?
A. Cash
B. Debtors
C. Loan from bank
D. Motor vehicles
E. Creditors
2. Choose the correct term from  LIST B  which matches with the explanation in  LIST
A  and write its letter in the answer sheet provided.


SECTION B (40Marks)
Answer all questions from this section
3. Indicate the accounts to be debited or credited from the following transactions


4. Explain the meaning of the following terms:

(i) Capital expenditure
(ii) Revenue expenditure
(iii)Accrued expenses
(iv)Provision for bad debts
(v) Pre-paid income
5. Briefly explain five causes of fall of value of non-current assets.
6. You are given the balances of rent and rates accounts as 1st January 2007: Rent and  rates -accrued TZS 31,000
-prepaid TZS 28,900
During the financial year of the business the following transactions took place:
Paid rent by cheque TZS 61,400
Paid rates by cheque TZS 41,200
Closing balance as at 31st December 2007 were:
Rent and rates -accrued TZS 29,900
-prepaid TZS 24,400
Required:  prepare the rent and rates account showing the amount to be transferred to  income statement for the year ended 31st December 2007
SECTION C (45 Marks)
Answer all questions in this section
7. On 1st January 2015 Mikuyu Motors Company ltd purchased Motor lorry worth sh.  12,000,000. The company used the asset for three years. On 31st December 2017 the  lorry was sold for sh. 3,000,000. It is the policy of the company to compute depreciation  using straight line method.
Using the information provided, prepare the Motor Lorry and Provision for
Depreciation on Motor Lorry Account for the three years ending 31st December
2015, 2016 and 2017.  
8. The following is a trial balance extracted from the books of a sole proprietor, Masanja  as at 31st December 2019
The following additional information is provided :



(a) Make a provision for depreciation of plant and machinery at 10% per annum and  fittings at 15% per annum
(b) Increase the provision for bad debts to an amount equal to 4% of sundry debtors
(c) Prepaid insurance amount to 500/-
(d) Rates accrued 400/-
(e) Closing stock was 60,000/-
(f) During the year Masanja took goods worth 2,000/- for his personal use
Required ;
Prepare income statement for the year ending 31st December 2019 and a statement of  financial position as at that date.
9. A businessman started a business on 1st January 2013. During the period to 31 st   December, trade debtors amounted to TZS 1,000,000 after writing off bad debts of TZS  9,000. It was also decided to provide for provision for bad debts equal to 05% of  debtors. 
During the year ended 31st December 2014 debtors stood at TZS 4,404,000 out of  these, debtors of TZS 4,000 are bad and cannot be realized. The provision for doubtful  debts is to be raised to 05% on sundry debtors.
You are required to prepare:
a) Bad debts account and provision for doubtful debts account.
b) Extract from income statement and statement of financial position.

FORM THREE BKEEPING EXAM SERIES 216  

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FORM THREE BKEEPING EXAM SERIES 216  

PRESIDENTS OFFICE
REGIONAL ADMINISTRATIONS AND LOCAL GOVERNMENT
FORM THREE EXAMINATIONS
BOOK KEEPING
Time: 3:00 Hours August, 2025
Instructions
Answer all questions.
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.
(i) Which of the following books of prime entry is used to record a list of goods sold on  credit?
A. The sales return day book
B. The purchases day book
C. The sales day book
D. The purchases return day book
E. The discount received book
(ii) When preparing a trial balance, what would result if sales made to Ramima sh. 57,000  are wrongly debited to Ramima account as sh. 75,000?
A. Debit column of trial balance will exceed credit column by sh. 75,000
B. Credit column of trial balance will fall by sh. 75,000
C. Debit column of trial balance will exceed credit column by sh. 18,000
D. Credit column of trial balance will exceed debit column by sh. 18,000
E. Debit column of trial balance will exceed credit column by sh. 57,000
(iii) Given balance as per cash book sh. 6,500, uncredited cheque sh. 1,500, bank charges  not yet entered in the cash book sh. 500 and credit transfer received by bank but not yet  entered in the cash book sh. 1,000. What will be the balance as per bank statement?
A. Sh. 7,500
B. Sh. 4,500
C. Sh. 8,500
D. Sh. 5,500
E. Sh. 6,500
(iv) Which of the following is BEST describes the meaning of ‘Purchases.’
A. Items bought
B. Goods bought on credit
C. Goods bought for resale
D. Goods paid for
E. Goods on transit
(v) In the income statement, the sales returns should be
A. Added to cost of goods sold
B. Deducted from purchases
C. Deducted from sales
D. Added to sales
E. Added to purchases.
(vi) A firm bought a machine for 50,000/= it expected to be used for 6 years and then  sold for the 5,000/=. What is the annual amount of depreciation if the straight-line  method is used?
A. 7,500/=
B. 7,000/=
C. 6,500/=
D. 6,750/=
E. 8,000/=
(vii) Which of the following expenditure the government receives no value?
A. Nugatory expenditure
B. Recurrent expenditure
C. Statutory expenditure
D. Development expenditure
E. Recurring expenditure
(viii) From the point of view of your business, which of the following is a liability?
A. A car bought on credit
B. A house bought by cash
C. Cash received from a debtor
D. Bank overdraft
E. Cheque given to Mr. Popo
(ix) Which of the following are the examples of revenue expenditures?
A. Purchases of goods and payment for electricity bill in cash
B. Repair of van and petrol costs of van
C. Buying machinery and paying for installation costs
D. Electricity costs of using machinery and buying van
E. Buying van and petrol costs for van
(x) Which one of the following would not be taken into account when calculating
working capital?
A. Cash
B. Debtors
C. Loan from bank
D. Motor vehicles
E. Creditors
2. Choose the correct term from  LIST B  which matches with the explanation in  LIST
A  and write its letter in the answer sheet provided.
SECTION B (40Marks)
Answer all questions from this section
3. Indicate the accounts to be debited or credited from the following transactions
4. Explain the meaning of the following terms:
(i) Capital expenditure
(ii) Revenue expenditure
(iii)Accrued expenses
(iv)Provision for bad debts
(v) Pre-paid income
5. Briefly explain five causes of fall of value of non-current assets.
6. You are given the balances of rent and rates accounts as 1st January 2007: Rent and  rates -accrued TZS 31,000
-prepaid TZS 28,900
During the financial year of the business the following transactions took place:
Paid rent by cheque TZS 61,400
Paid rates by cheque TZS 41,200
Closing balance as at 31st December 2007 were:
Rent and rates -accrued TZS 29,900
-prepaid TZS 24,400
Required:  prepare the rent and rates account showing the amount to be transferred to  income statement for the year ended 31st December 2007
SECTION C (45 Marks)
Answer all questions in this section
7. On 1st January 2015 Mikuyu Motors Company ltd purchased Motor lorry worth sh.  12,000,000. The company used the asset for three years. On 31st December 2017 the  lorry was sold for sh. 3,000,000. It is the policy of the company to compute depreciation  using straight line method.
Using the information provided, prepare the Motor Lorry and Provision for
Depreciation on Motor Lorry Account for the three years ending 31st December
2015, 2016 and 2017.  
8. The following is a trial balance extracted from the books of a sole proprietor, Masanja  as at 31st December 2019
The following additional information is provided :
(a) Make a provision for depreciation of plant and machinery at 10% per annum and  fittings at 15% per annum
(b) Increase the provision for bad debts to an amount equal to 4% of sundry debtors
(c) Prepaid insurance amount to 500/-
(d) Rates accrued 400/-
(e) Closing stock was 60,000/-
(f) During the year Masanja took goods worth 2,000/- for his personal use
Required ;
Prepare income statement for the year ending 31st December 2019 and a statement of  financial position as at that date.
9. A businessman started a business on 1st January 2013. During the period to 31 st   December, trade debtors amounted to TZS 1,000,000 after writing off bad debts of TZS  9,000. It was also decided to provide for provision for bad debts equal to 05% of  debtors. 
During the year ended 31st December 2014 debtors stood at TZS 4,404,000 out of  these, debtors of TZS 4,000 are bad and cannot be realized. The provision for doubtful  debts is to be raised to 05% on sundry debtors.
You are required to prepare:
a) Bad debts account and provision for doubtful debts account.
b) Extract from income statement and statement of financial position.

FORM THREE BKEEPING EXAM SERIES 204  

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FORM THREE BKEEPING EXAM SERIES 204  

 

 

PRESIDENT OFFICE REGIONAL  ADMINISTRATION

AND LOCAL GOVERNMENT

SECONDARY EXAMINATION SERIES 

COMPETENCE BASED  ASSESSMENT

FORM THREE

MID TERM EXAMS-AUG– 2023

062     BOOK KEEPING

Time: 2:30 Hours                             August, 2023

Instructions 

  1. This paper consists of sections A, B and C with a total of nine (9) questions.
  2. Answer all the questions.   
  3. Sections A 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. Non – programmable calculators may be used.
  6. All communication devices, programmable calculators and any unauthorized materials are not allowed in the examination room.
  7. Write your Examination Number on every page of your answer booklet (s).

 


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 besides the item number in the answer booklet provided:
  1. How could purchases of a non- current assets by cheques affect the statement of financial position?
  1. By decreasing non-current assets account and decreasing bank account 
  2. By increasing bank account and decreasing asset account 
  3. By increasing non-current asset account and decreasing cash account 
  4. By increasing cash account and decreasing asset account 
  5. By increasing non-current asset account and decreasing bank account 
  1. Amount of surplus in a statement of income and expenditure account indicates:
  1. Excess of income over expenditure  
  2. Excess of cash received over credit sales
  3. Excess of expenditure over income
  4.  Excess of gross profit over expenses
  5. Excess of expenses over net profit
  1. Government expenditures on items from which the government attains no value are called.


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

 


  1. Which items would appear under non-current liabilities in the statement of financial position?
  1. TZS 700,000/= 5 years Loan from NBC. 
  2. TZS 900,000/= of Credit purchases 
  3. TZS 500,000/= paid for expenses 
  4. TZS 600,000/= 10 months Loan from NMB
  5. TZS 800,000/= 6 months Loan from CRDB
  1. On 20th July, 2023, Mtumzima, 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: Bank account
  5. Debit: Machinery account, Credit: Cash account
  1. At the beginning of Accounting year, Wini Charity Foundation had TZS 140,000/= as non-current Assets, TZS 50,000/= as current Assets and TZS 60,000/= as liabilities. What would be its opening Accumulated fund?


  1. TZS 190,000/=
  2. TZS 200,000/=
  3. TZS 110,000/=
  4. TZS 130,000/=
  5. TZS 250,000/=


  1. Which of the following best describes Non-current assets?
  1. Expensive items bought for the business
  2. Items having long life and not bought for resale
  3. Items which will not wear out quickly
  4. Items which do not add value to a business
  5. Items bought to be used by the business
  1. ______________ 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
  5. Note books


  1. “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. Dual Aspect concept
  4. Money measurement concept
  5. Business entity concept


  1. A firm bought a Motor van for TZS 5,000,000 which had a scrap value of TZS 500,000, and useful life of 5 years. What would be the depreciation charge if a straight line method is used?


  1. TZS 1,000,000 
  2.  TZS 1,100,000  
  3. TZS 900,000 
  4. TZS 100,000 
  5.  TZS 500,000


 


  1. 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.

Column A

Column B
  1. The ministry which has been generally vested the task of accounting for all government money
  2. A person appointed by the treasury in writing and charged with the duty of regulating funding issue from exchequer account
  3. Any person who is appointed in writing by accounting officer to authorize the expenditures for specific items of expenditures
  4. An account to which all government money collected from various sources are deposited.
  5. An officer appointed by the president of United Republic of Tanzania for controlling and regulating the use of public money
  1. Collector of revenue
  2. Authorized officer
  3. Treasury
  4. Accounting officer
  5. Consolidated fund
  6. Controller and Auditor General
  7. Warrant holder
  8. Exchequer Account
  9. Paymaster General

 

SECTION B (40 Marks)

Answer all questions in this section.

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

 

S/N

Transactions

Account to be debited

Account to be credited

i

Cash paid to Rahima

 

 

ii

A payment of rent by cash

 

 

iii

Sales of goods to Mtumzima

 

 

iv

Cash received from Julius

 

 

v

Purchased goods for cash 

 

 

 

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

S/N

ASSETS

CAPITAL

LIABILITIES

i

TZS 3,500,000

TZS 1,700,000

TZS   __________

ii

TZS   ___________

TZS 8,000,000

TZS 4,100,000

iii

TZS 4,900,000

TZS  _________

TZS 2,100,500

iv

TZS 25,600,000

TZS 17,900,000

TZS    __________

v

TZS   ____________

TZS 15,500,000

TZS 3,400,000

 

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


  1. Accrued expenses
  2. Book keeping
  3. Credit transaction
  4. Carriage outwards
  5. Trial balance
  1. Winfrida is a business woman who owns a Jewels shop in Arusha. She is also a customer of CRDB bank. Winfrida prefers to settle her debts using cheques. In the last month, she wrote a cheque to Onesmo, her creditor, for which the bank refused to settle it. In five points outline the reasons for this to happen.

 

SECTION C (45 Marks)

Answer all questions in this section.

  1. Mtumzima Transport Company with the financial year ending on 31st December, bought two motor vans on 1st January 2011, No 1 for TZS 18,000,000 and No 2 for TZS 15,000,000. It also buys another van, No. 3 on 1st July 2012, for TZS 19,000,000 and another No 4 on 1st October, 2013 for TZS 17,200,000 the van No 1 was sold for TZS 6,290,000 on 30th September 2014. It is a company’s policy to charge depreciation at 15% per annum using a straight line method for each month of ownership basis.

         Required: Prepare for the year ended 31st December, 2011, 2012, 2013 and 2014.

  1. Motor van account
  2. Accumulated Provision for depreciation account
  3. Motor van disposal account
  1. The following information is available from the books for Ethan Wholesale Store on 1st September, 2021:

Balances in purchases ledger     TZS 120,000 (CR)

Balances in sales ledger      TZS 7,100 (CR)

Balances in purchases ledger     TZS 4,800 (DR)

Balances in sales ledger      TZS 163,100 (DR)

During September 2021:

Sales         140,000

Purchases         88,000

Returns inwards from debtors      55,000

Returns outwards from creditors       7,300

Receipts from debtors       91,300

Payments to creditors       76,700

Discount allowed        4,000

Discount received         2,200

Bad debts written off       3,800

Debtors cheque dishonored      7,500

Interest charged to debtors on overdue accounts     500

Sales ledger debit transferred to purchases Ledger   9,600 

Notes:

  1. 10% sales and discount allowed relate cash transactions
  2. 5% of the goods bought during the month were destroyed by fire, the insurance company had agreed to pay adequate claim.

You are required to prepare:

  1. A sales ledger control account
  2. A purchases ledger control account
  1. Mtumzima Entreprises had the following assets and liabilities on the date shown:

       01.01.2021         31.12.2021

 Premises          14,500     14,500

 Motor cars            2,800                 1,800 Furniture                                                                             3,500                                  3,200

 Stock in Trade          11,200      13,100

 Trade debtors          10,900      11,400

 Trade creditors                   14,600                17,200

 Cash at bank             1,330         3,980

 Prepaid expenses              670                  1,120

 Accrued expenses           1,300                     600

During 2021, Mtumzima withdrew TZS 3,000 per month from the business bank account for his personal use. On 4 July 2021 he sold his personal car for TZS 12,000 and paid the proceeds into the business bank account.

Required:

Calculate the net profit or loss made by Mtumzima for year ended 31st December, 2021.


 

 

 

 

FORM THREE BKEEPING EXAM SERIES 149  

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FORM THREE BKEEPING EXAM SERIES 149  

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

COMPETENCY BASED SECONDARY EXAMINATION SERIES

FORM THREE EXAMINATION

062     BOOK-KEEPING

Time: 2:30 Hours                                                                                                        Sept, 2022

 Instructions  

  1. This paper consists of sections A, B and C with a total of nine (9) questions.
  2. Answer all questions in sections A and B and two (2) questions from section C.
  3. Section A carries twenty (20) marks, section B forty (40) marks and section C carries forty (40) marks.
  4. All writings should be in blue or black ink pen and all drawings should be in pencil.
  5. Non programmable calculators may be used.
  6. Cellular phones, programmable calculators and any unauthorized materials are not allowed in the examination room.

SECTION A (20 Marks)

Answer all questions in this section 

  1. For each of the items (i) – (xv), choose the correct answer from among the given alternatives and write its letter besides the item number in the answer booklet provided:
  1.  Mtumzima bought 5 items of TZS 800 each, and given allowance of 25% trade discount and 5% cash discount, if he could settle within the agreed credit period, how much was paid?
  1. TZS 2,850    
  2. TZS 2,800     
  3. TZS 2,600
  4. TZS 4,000 
  5. TZS 3,000
  1. Mr. MRAMBA as a Petty cashier was given a desired cash float of TZS 100,000/= if TZS 72,000/= is spent by him, under imprest system of petty cash how much will be reimbursed?


  1. TZS 28,000/=                       
  2. TZS 172,000/= 
  3. TZS 72,000/=     
  4. TZS 70,000                 
  5. TZS 100,000/=


  1. The book value of an Asset after two years, using straight line method at 10% was TZS 10,000/=. What was the cost price of the Asset?


  1. TZS 20,000/=      
  2. TZS15,000/=    
  3. TZS 12,500/= 
  4. TZS 10,000/=            
  5. TZS 30,000/=


  1. Amount of surplus in a statement of income and expenditure account indicates:
  1. Excess of income over expenditure  
  2. Excess of cash received over credit sales
  3. Excess of expenditure over income
  4.  Excess of gross profit over expenses
  5. Excess of expenses over net profit
  1. Which of the following errors would be disclosed by the Trial Balance?
  1. Credit sales of TZS 20,000/= entered in the books as TZS 2,000/=
  2. Cheque for TZS 65,000/= from R.James entered in R.James as TZS 59,000/=
  3. Cash sales TZS 100,000 were completely omitted in the books
  4. Selling expenses TZS 5,000 had been debited to sales Account.
  5. A purchase of goods worth TZS 2,500/= omitted from the books
  1. Government expenditures on items from which the government attains no value are called.


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


  1. What is the effect of TZS 500,000/= being added to Purchases instead of being added to a non-current asset?
  1. Net profit would be understated
  2. Net profit would be overstated
  3. Both Gross profit and Net profit would be understated
  4. Net profit would not be affected
  5. Gross profit would be affected
  1. At the beginning of Accounting year, a club had TZS 14,000/= as non-current Assets, TZS 5,000/= as current Assets and TZS 5,000/= as liabilities. What would be its opening Accumulated fund?


  1. TZS 4,000/=                      
  2.  TZS 14,000/=  
  3. TZS 12,000/=                    
  4. TZS 24,000/=
  5. TZS 10,000/=


  1. When the financial statements are prepared, the bad debts Account is closed by being transferred to: -
  1. Statement of financial position                      
  2.  Provision for doubtful debts Account
  3. Income statement         
  4. Statement of affairs
  5. Trading account
  1. When business entity paid rent of TZS 800,000/=. The payment was recorded in the books as follows. Debit: “Bank” TZS 800,000/= and Credit: Rent TZS 800,000/=. What entries will be posted to rectify this error?
  1. Debit “Bank” TZS 800,000/= and credit “Rent” TZS 800,000/=
  2. Credit “Rent” TZS 800,000/= and credit “Bank” TZS 800,00/=
  3. Debit “Bank” TZS 800,000/= and Credit “Rent” TZS 1,600,000/=
  4. Debit “Rent” TZS 1,600,000/= and credit “Bank” TZS 1,600,000/=
  5. Debit “Bank” TZS 1,600,000/= and credit “Rent” TZS 1,600,000/=
  1. A business had an opening and closing capital balances of TZS 57,000/= and TZS 64,300/= respectively. The drawings during the same year amounted to TZS 11,800/= What was the amount of profit made by the business during that year?


  1. TZS 19,100/=  
  2. TZS 16,600/=  
  3. TZS 5,000/= 
  4. TZS 19,600/=  
  5. TZS 18,600/=


  1. Gloria General store sold goods worth TZS 100,000/= to Joshua on credit and were neither recorded in sales account nor in Pearl’s personal account. This represents an error of:
  1. Error of commission.
  2. Error of omission.
  3. Error of original entry
  4. Error of principle.
  5. Error of complete reversal of entries.
  1.             Jeff and Witness were arguing on the primary and basic reason of preparing a trial balance. As form three student taking business studies, what is the basic reason for writing up a trial balance among the following reasons?
  1.               A trial balance issued for internal control as back up document.
  2.               A trial balance is used as a tool for preparing financial statement.
  3.               A trial balance is used to determine a reliable financial position
  4.               A trial balance is used to present a list of balances at one place.
  5.                A trial balance is used to check arithmetical accuracy of double entry.
  1. Which of the following are the examples of revenue expenditure?
  1. Purchases of goods and payment for electricity bill in cash
  2. Repair of van and petrol costs for van
  3. Buying machinery and paying for installation costs
  4. Electricity costs of using machinery and buying van
  5. Purchases of office equipment
  1. A firm bought a Motor van for TZS 50,000 which had a scrap value of TZS 5,000, and useful life of 5 years. What would be the depreciation charge if a straight line method is used?


  1. TZS 10,000 
  2.  TZS 11,000  
  3. TZS 9,000 
  4. TZS 1,000 
  5.  TZS 5,000


  1. 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.

Column A

Column B
  1. The ministry which has been generally vested the task of accounting for all government money
  2. A person appointed by the treasury in writing and charged with the duty of regulating funding issue from exchequer account
  3. Any person who is appointed in writing by accounting officer to authorize the expenditures for specific items of expenditures
  4. An account to which all government money collected from various sources are deposited.
  5. An officer appointed by the president of United Republic of Tanzania for controlling and regulating the use of public money
  1. Collector of revenue
  2. Authorized officer
  3. Treasury
  4. Accounting officer
  5. Consolidated fund
  6. Controller and Auditor General
  7. Warrant holder
  8. Exchequer Account
  9. Paymaster General

SECTION B (40 Marks)

Answer all questions in this section.

  1. Book keeping involves the recording on a daily basis of a company’s financial transactions whether on single entry system or double entry system and because of book keeping, companies are able to track all financial information on its books to make key operating, investing, and financing decisions. Outline five reasons stating why double entry system is better in book keeping.
  2. On 1st July, 2017 Mtumzima Company bought a machinery for TZS 18,000,000, and decided to sell it for TZS 12,000,000 after using it for four (04) years. In four (04) points describe briefly why the company decided to sell a machinery at a price lower than the original cost price.
  1. Prepaid rent at the beginning of the period was TZS 40,000/= and TZS 20,000/= was not paid last year. During the year payment of TZS 320,000/= was made with respect to rent. It was established that at the end of the period prepaid rent should be TZS 60,000/=. Compute the amount of Rent Expenses to be transferred to income statement.
  2. The following information relates with Star social club for the year ended 31st June 2020.

1.7.2019  31.6.2020

Subscription in arrears    4,500   3,200

Subscription received in advance   6,300   1,800

During the year, the subscriptions amounted to TZS. 120,000 were received from the club members.

Required:

Subscription account, showing the amount to be transferred to the statement of Income and expenditures for year ended 31st June, 2020.

SECTION C (40 Marks)

Answer two (2) questions from this section.

  1.       SIJAFELI keeps his books on a single entries system. The following are the balances of Assets and Liabilities of his business for the year ended 31st December, 2017.

Receipts and Payments made for cash during the year were as follows:

Receipts from Debtors ______________________________________420,000

Payment to Creditors ______________________________________200,000

Carriage inwards ___________________________________________ 40,000

Drawings _________________________________________________120,000

Sundry Expenses __________________________________________140,000

Purchases of new furniture ___________________________________ 20,000

Other information:

There was a considerable amount of cash sales. Depreciate furniture at 10% on a closing balance.

From the information provided, prepare

  1.              Accounts receivables and Accounts payables control Accounts
  2.             Cash Account.
  3.              Income statement for the year ended 31st December 2017
  4.             Statement of financial position as at 31st December 2017 
  1. MtumzimaSports Club, a non-profit making organization was looking for a form three student who is able to assist them in the preparations of various accounts and statements for payments. In their interview one of the questions was as follows: -

Assets and Liabilities:

Receipts and Payments Account

 The following information were also available

  1. The sports equipment sold during the year had a book value of sh.3,500/=
  2. Depreciation on sports equipment was provided at 20% per year

Required:

  1. A statement of affairs as at 1.1.2016
  2. Subscription account
  3. A statement of Income and expenditure for the year ended at 31.12.2016
  4. A statement of financial position as at that date.
  1. The financial year of Collins Trading Company ended on 31.12.2017. You have been asked to prepare a Total Debtors Account and a Total Creditors Account in order to produce end-of-year figures for Debtors and Creditors for the draft financial statements.

You are able to obtain the following information for the financial year from the books oforiginal entry:

TZS

Sales made on Cash basis        782,500

Sales made on Credit       368,187

Purchases made on Cash basis       214,440

Purchases made on Credit        596,600

Total cash receipts from customers       300,570

Total cash payments to suppliers       503,970

Discounts allowed (all to credit customers)     5,520

Discounts received (all from credit suppliers)     3,510

Refunds given to cash customers       5,070

Balance in the sales ledger set off 

against balance in the purchases ledger      700

Bad debts written off        780

Credit notes issued to credit customers      4,140

Credit notes received from credit suppliers     1,480

According to the audited financial statements for the previous year debtors and creditors as at 1.1.2017 were TZS 26,555 and TZS 43,450 respectively.

Required:

  1.              Accounts receivables Control Account
  2.             Accounts payables Control Account

Page 1 of 10

FORM THREE BKEEPING EXAM SERIES 98  

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FORM THREE BKEEPING EXAM SERIES 98  

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