FORM ONE BKEEPING TERMINAL EXAMS
OFFICE OF THE PRESIDENT, REGIONAL ADMINISTRTION AND LOCAL GOVERNMENT
SECONDARY EXAMINATION SERIES
TERMINAL EXAMINATIONS-MAY-2025
BOOK-KEEPING FORM ONE
Instructions
1. This paper consists a total of five (6) questions. 
2. Answer all questions in the spaces provided. 
3. All writings must be in blue or black ink except drawings which must be in pencil. 
4. Cellular phones and any unauthorized materials are not allowed in the assessment room. 
5. Write your name at the top right corner of every page.
1. Choose the correct answer from alternatives given in (i)-(x) by writing correct answer in spaces  provided.
1. The accounting equation is:
a) Assets = Liabilities - Capital
b) Assets = Capital + Revenue - Expenses
c) Assets = Capital + Liabilities
d) Assets + Expenses = Capital - Liabilities 
2. In the double-entry system, a decrease in a liability is recorded by a:
a) Debit entry
b) Credit entry
c) Increase in capital
d) Decrease in assets 
3. Which of the following is a correct statement of the double-entry principle?
a) For every credit entry, there may be multiple debit entries.
b) For every debit entry, there must be a corresponding credit entry of the same amount.
c) Debit entries are recorded on the right side of an account.
d) Credit entries decrease the balance of an account.
4. Buying a sterilizer for shaving machines on credit will:
a) Increase assets and decrease liabilities.
b) Decrease assets and increase liabilities.
c) Increase assets and increase liabilities.
d) Decrease assets and decrease liabilities. 
5. Which type of account is used to record revenues and expenses?
a) Personal accounts
b) Real accounts
c) Nominal accounts
d) Assets accounts 
6. According to the golden rules of accounting, what do you do with a personal account?
a) Debit what comes in, credit what goes out
b) Debit the receiver, credit the giver
c) Debit all expenses and losses, credit all incomes and gains
d) Debit all incomes and gains, credit all expenses and losses [cite: 113]
7. An increase in revenue will ultimately:
a) Decrease capital
b) Increase liabilities
c) Increase assets and decrease capital
d) Increase capital 
8. The primary reason for using a double-entry system is to:
a) Simplify the recording of transactions
b) Ensure arithmetic accuracy
c) Reduce the number of entries
d) Increase the value of assets 
9. What is the effect on the accounting equation when an expense is paid in cash?
a) Assets increase and capital decreases
b) Assets decrease and capital increases
c) Assets increase and liabilities decrease
d) Assets decrease and capital decreases
10. Which of the following is NOT an advantage of the double-entry system?
a) It helps in the preparation of financial statements
b) It ensures that financial records are kept properly
c) It eliminates the possibility of errors
d) It assures arithmetic accuracy 
2. Match the items in column A with the corresponding items in column B by write the letter of the  correct answer beside the item number in a given box below;


3. Write short notes on the following terms 
a) Capital _____________________________________________________________________________  _____________________________________________________________________________ 
b) Transaction  _____________________________________________________________________________  _____________________________________________________________________________ 
c) Profit _____________________________________________________________________________  _____________________________________________________________________________ 
d) Sole proprietor  _____________________________________________________________________________  _____________________________________________________________________________ 
e) Depreciation  _____________________________________________________________________________  _____________________________________________________________________________

4. Book keeping is important to business owners and other parties outside of an enterprise for the  different reasons. Outline five (5) importance of bookkeeping 
i) ______________________________________________________________________ 
ii) 
iii) ______________________________________________________________________  ______________________________________________________________________ 
iv) ______________________________________________________________________ 
v) ______________________________________________________________________ 
5. The accounting cycle is a series of steps that companies use to record and process their financial  transactions. List eight stages of accounting cycle 
(i) ____________________________________________________________________ 
(ii) 
(iii) 
(iv) 
(v) 
(vi) 
(vii) 
(viii) ____________________________________________________________________ 
6. Complete the table below

FORM ONE BKEEPING EXAM SERIES 216  

MARKING SCHEME | DOWNLOAD |

FORM ONE BKEEPING EXAM SERIES 216  

Download Learning
Hub App

For Call,Sms&WhatsApp: 255769929722 / 255754805256


Matokeo KIDATO CHA II 2024   Matokeo Darasa IV 2024   SECONDARY REGIONAL EXAMS   PRIMARY REGIONAL EXAMS     FORM VI NECTA REVIEWS     FORM IV NECTA REVIEWS   FORM II NECTA REVIEWS     STD VII NECTA REVIEWS     STD IV NECTA REVIEWS     SECONDARY EXAMS SERIES   PRIMARY EXAMS SERIES     PRIMARY SUBJECT NOTES     SECONDARY SUBJECT NOTES     SECONDARY TOPICAL EXAMS     SECONDARY TOPICAL QUESTIONS     PRIMARY TOPICAL QUESTIONS     PRACTICAL EXAMS & NOTES     SECONDARY REGIONAL EXAMS     DOWNLOAD SUBJECT NOTES       SCHEMES OF WORK (PRIMARY & SECONDARY)     LESSON PLAN       SECONDARY LOG BOOKS     PRIMARY LOG BOOKS     LITERARY WORKS / UCHAMBUZI VITABU     METHALI ZOTE ZA KISWAHILI     Vitendawili Vya Kiswahili   FORM VI RESULTS 2024   FORM FIVE SELECTION 2024   MATOKEO KIDATO CHA IV 2023  FORM ONE SELECTION 2024  Matokeo Darasa VII 2023   FORM VI RESULTS 2023   Matokeo Darasa IV 2022  

WHATSAPP US NOW FOR ANY QUERY

  WhatsApp Us Now Line #1  

  WhatsApp Us Now Line #2  
GO TO NECTA EXAMS