THE UNITED REPUBLIC OF TANZANIA PRIME MINISTER’S OFFICE,  REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM TWO TERMINAL EXAMINATION

062 – BOOK KEEPING

TIME: 2:00 HRS MAY 2026

Instructions

1. This paper consists of three sections A, B and C with a total of nine (9) questions.
2. Answer all questions in all Sections
3. Show clearly all necessary workings.
4. Calculators may be used where necessary.

SECTION A (15 MARKS)

1. For each of the following items write the letter of the correct answer in the answer booklet provided.

i. Which of the following is a real account?

1. Wages 
2. Cash 
3. Sales 
4. Capital

ii. The accounting equation states that:

1. Assets = Capital – Liabilities 
2. Assets = Capital + Liabilities 
3. Assets = Liabilities – Capital 
4. Capital = Liabilities – Assets

iii. Which book records small day-to-day expenses?

1. Ledger 
2. Journal 
3. Petty cash book 
4. Sales book

iv. Which of the following is a current asset?

1. Furniture 
2. Stock 
3. Loan 
4. Capital

v. The main purpose of an income statement is to determine:

1. Capital 
2. Profit or loss 
3. Assets 
4. Liabilities

vi. A cheque issued but not yet presented will:

1. Increase bank balance 
2. Be added in bank reconciliation 
3. Be deducted from bank balance 
4. Be ignored

vii. Which column is found in a two-column cash book?

1. Cash and Discount
2. Cash and Bank
3. Bank and Purchases 
4. Sales and Cash

viii. Debtors are classified as:

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

ix. Which of the following is a liability?

1. Debtors 
2. Cash 
3. Creditors
4. Stock

x. Drawings reduce:

1. Assets 
2. Liabilities 
3. Capital 
4. Expenses

2. Match items in Column A with the correct answer in Column B.

SECTION B (40 MARKS)

3. Classify the following as Personal, Real or Nominal accounts:

4. Complete the gaps in the following table:

5. Enter the following transaction in the petty cash book of F. Funds with column for; postage and telegram, stationery, traveling, office expenses in the year 2010. Balance of the account as at 1^st Feb 2010. 1^st Jan 2010 received Imprest cash Tshs 100,000 from the main cashier. Payments:

1^st Jan 2010 paid Stationery Tshs 15,000;

3^rd Jan 2010 paid Postage Tshs 10,000;

4^th Jan paid Bus fare Tshs 12,000;

10^th Jan paid for office Cleaning Tshs 8,000; 28^th

Jan paid Tea Tshs 5,000.

6. Write up the two-column cash book for the following details and balance it off at the end of the month.

2003 May 1 Balances brought forward from April: 

Cash TZS 54,000, Bank TZS 140,000

May 4 Paid advertising costs by cheque, TZS 32,000

May 6 Cash purchases TZS 25,000

May 11 Received cheque from Swaumu, TZS 90,000

May 14 Took TZS 45,000 cash out of bank account

May 17 Paid sundry expenses TZS 34,000 cash

May 20 Paid cheque to Lulu TZS 72,000

May 22 Cash sales TZS 95,000

May 24 Paid TZS 55,000 cash into bank

May 28 Borrowed TZS 205,000 from Jackson – received money by cheque

SECTION C (45 MARKS)

7.  The manager of kitambi store has extracted the following details from the comparison of the cash book and bank statement for the month of December 2021.

1. The cash book showed a debit balance of tshs 9,360,000 at the bank, and bank statement showed a credit balance of tshs 5,961,000.
2. Cheques drawn but not yet presented to the bank: Sarinjo tshs 171,000; Hafsa tshs 294,000.
3. Cheque paid to the bank but yet credited to the bank but not yet credited to the bank: Marwa tshs 600,000; Misuka tshs 165,000.
4. Items shown in the bank statement but not yet entered in the cash book: stand order for insurance premium tshs 2,520,000; bank charges tshs 57,000; cheque received from Songa and dishonored by the bank tshs 468,000.
5. Cheque payment of tshs 324,000 had been entered in the cash book (bank column) as tshs 270,000. 

Required: Assist the manager to prepare a bank reconciliation statement without adjusting the cashbook starting with balance as per cash book.

8.  The following balances were extracted from the books of Shirima for the year ending 31 December 2020.

Use the information provided to prepare her statement of financial position.

 9. The following information are available in the books of Lilian Moore as at 1st January 2014. Draft only an income statement as at that date.

Opening Inventory . . . . . . . . . . . . . . . . . . .70,000

Purchases amounted to . . . . . . . . . . . . . . . . .350,000

Sales . . . . . . . . . . . . . . . . . . . . . . . ..620,000

Return inwards . . . . . . . . . . . . . . . . . . . . .12,000

Carriage outward . . . . . . . . . . . . . . . . . . . ..8,000

Carriage inwards . . . . . . . . . . . . . . .. . . . . .3,500

Wages . . . . . . . . . . . . . . . . . . . . . . . . 8,000

Salaries . . . . . . . . . . . . . . . . . . . . . . .11,000  

Electricity . . . . . . . . . . . . . . . . . . . . . . .7,000

Commission received . . . . . . . . . . . . . . . . .....10,000

Discount allowed . . . . . . . . . . . . . . . . . . . ..4,000

Discount received . . . . . . . . . . . . . . . . . . . ..8,500

General expenses . . . . . . . . . . . . . . . . . . . ..6,000

Closing inventory . . . . . . . . . . . . . . . . . . . ..20,000

Required:

• Prepare the income statement for the year ended 31st December 2014.

OFFICE OF THE PRESIDENT

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

SECONDARY EXAMINATION SERIES

FORM TWO TERMINAL EXAMINATION-MAY-2023

BOOK-KEEPING

062

TIME: 2:30Hours

Instructions 

1. This paper consists of section A, B and C with a total of nine (9) questions.
2. Answer all questions.
3. All answers must be written in the spaces provided.
4. All writings must be blue or black ink except drawings which must be in pencil.
5. Calculators, cellular phones and any unauthorized materials are not allowed in the examination room.
6. Write your Examination Number on the top right of every page.

SECTION A (15 Marks)

Answer all questions in this section

1. For each of the items (i) – (x), choose the correct answer form among the given alternatives and write its letter beside the item number in the box provided.

1. After balancing all accounts, Mwangumi prepared a trial balance. He did this because of

1. Reducing errors in the double entry accounts
2. Indicating errors where they have occurred
3. Checking the arithmetic accuracy of double entry
4. Preventing errors and frauds in accounts.

2. Kabila, the owner of WATOTO WAVAE SHOP, separates his business transactions from his personal transactions. What accounting concept does he apply?

1. Historical cost
2. Going concern
3. Money measurement
4. Business entity

3. Suluhu started business last week and bought goods from various suppliers. He is now planning to return some goods to some of his suppliers. His decision may be due to

1. The goods were durable
2. The goods were so expensive
3. The goods were expired
4. The goods were perishable

4. When preparing statement of financial position, you have decided to arrange the current assets in their descending order. How will they be presented?

1. Inventory, trade receivables, bank, cash
2. Cash, bank, trade receivables, inventory
3. Trade receivables, inventory, cash, bank
4. Inventory, trade receivable, cash, bank

5. Kale has banked some of her business cash into the bank. What term is given to this transaction?

1. Double entry
2. Single entry
3. Contra entry
4. Two – sided entry

6. Mungiya is a sole proprietor of a retail shop. The capital of his business will decrease if:

1. His profit is equal to his capital
2. His drawings is bigger than his profit
3. His drawings is less than his profit
4. His profit is bigger than his capita.

7. The government has rented a house which is not used at all. What type of expenditure is this?

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

8. After posting all transactions in their respective ledgers and balancing them, Mwakapala prepared a statement showing a list of balances on 30^th April, 2022. Which name is given to this statement?

1. Bank statement
2. Income statement
3. Trial balance
4. Final/closing statement

9. The amount of cash or stock taken from the business by Mwahija, a sole proprietor, for her personal use is termed as

1. Expenses
2. Income
3. Drawings
4. Asset

10. When recording transactions in the three column cash book, the memorandum column on the debit side will record

1. Cash received
2. Cash paid
3. Discount allowed
4. Discount received

2. For each items (i) – (v), match the descriptions of officers in government accounting and budgeting in List A with their corresponding names in List B by writing the letter of the response below corresponding item number in the table provided

SECTION B (40 Marks)

Answer all questions in this section

3. Mswahili is a very reluctant business owner. He claims that, preparing financial statements is wastage of time because they end up being used by the business owner himself. You as his closed friend, briefly explain to him to clear his claim. (five (5) points)

1. ________________
2. ___________________
3. _______________________
4. ___________________________
5. ______________________________

4. Binti Mabuluu is a sole trade. She sells and buys goods by cash and on credit. State the transactions that she will record in each of the following journals.

1. Sales journal
2. Returns inwards journal
3. Returns outwards journal
4. Purchases journal
5. Cash book

5. In your school, the form one students are not much competent entry e-records. You as a competent form two student , help them by using transactions indicated in the table below:

6. Khuwayriy operates a current account with Amana Bank. He has received a bank statement dated 30^th April 2022 from the bank. Surprisingly, he discovered that the balance in it is TZS 2,000,000/= while that shown in his cash is TZS 1,500,000/= Educate him on causes for this situation. (5 points)

1. ________________
2. ________________
3. ________________
4. ________________
5. ________________

SECTION C (45 Marks)

Answer all questions in this section

7. Bwana Mayowe has given you the following information concerning his cash transactions for the month of March, 2018

March 1 Cash balance 54,000debit, bank balance 150,000 credit

March 2 Received cheque from Kakulu 182,000 after deducting cash discount of 1,000

March 5 Withdrew 6,500 from bank for personal use

March 9 paid kato by cheque 5,200 after deducting 520 cash discount

March 12  Received 12,600 cash and 11,500 cheque from Kipchoge.

March 15 deposited 40,000 cash into bank

March 19 Bought a computer 60,000 and paid half amount by cheque on account

March 22 Paid stationery 14,800 cash

March 24 Sold some old furniture and received cash 7,500

March 28 Paid Exim Bank loan 15,000 by cheque

March 29 Withdrew 16,000 from bank for office use 

March 31  Paid salaries 2,000 cash and 35,000 by cheque 

Help Bwana Mayowe to record the above transactions in a suitable cash book and show the opening balances as at 1^st April, 2018

8. The following information were obtained from your school shop.

TZS

Stock a 1^st January 2018 ......................................... 3,249

Purchases ............................................................... 11,380

Sales ...................................................................... 18,462

Motor expenses ....................................................... 520 

Salarie ..................................................................... 150

Rent and rates .......................................................... 670

Insurance ............................................................... 111

General expenses ..................................................... 105

Premises .............................................................. 1,500

Motor vehicles .................................................. 1,200

Debtors .............................................................. 1,950

Cash at bank ....................................................... 1,654

Creditors ......................................................... 1,538

Cash in hands ................................................ 2,040

Drawings ........................................................ 895

Capital ......................................................... 5,424

Stock on 31^st December, 2018 .................... 2,548

As a form two book keeping student, use the relevant financial statements to determine.

1. School shop’s profit or loss
2. School shop’s financial position

9. Majigambo is a businessman, but he does not know well to record transactions. He committed many mistakes when recording transactions.

You as business studies student, use the knowledge of book keeping to draw the journal and show the corrections of the following mistakes made by Majigambo;

1. Sales of goods for 200,000 have been credited to motor vehicle accounts
2. Purchases of goods for cash 100,000 has not been entered in the ledger accounts.
3. Sales of goods on credit of 82,000 to Tunu were entered by mistake in Tuna’s account
4. Returns outwards of 117,000 to Chepesi were entered in both accounts as 171,000
5. A cash drawings of 32,000 was debited to the cash account and credited to the drawings account
6. Purchases of motor van by cash 89,000 was recorded in purchases account
7. Sales account was undercasted by 358,000

Note: (Narrations are not required)