Form 2
FORM TWO BOOK-KEEPING NEW
FORMAT ASSESSMENT
BUSINESS TEACHERS OF TANZANIA (BTOT)
BTOT
Form two New Format Book-keeping Assessment
Acknowledgement.
It requires a package of time and efforts to bring this material to its final form. My sincere
gratitude goes to all those who helped in all the stages of producing this material including those
whose names will not appear here due to our human element.
Many thanks to the following, for their vital support, morale and contribution from the
commencement up to the completion of this book.
Swaburi A. Murshid
Ombeni Mnyusa
Mohamed Lawa
Muhajir Bwikizo
Msadiko Misango
Kasto Shonde
Shomari Shaban
Gwakisa Mwasumbi
Wilson Lupembela
Milly Ruth
Lusekelo Kalulunga
Athuman Rashid
Eddah Luckson
Vumilia Samson
Hassan Hamis
Robert M. Mwangoka
Zaina M. Mbega
Paschal Sechambo
Manyanya M. Manyanya
Salvatory Ephraim
Shakiru Bashiru
Iddy J. Upatu
Ritha N. Richard
Faith Tamiila
Polician Kalambo
Eliya Machage
Halima H. Tindwa
Yemen Secondary School
St. Monica Moshono Girls Secondary School
Ibugule Secondary School
Matangini Islamic High School
Simiyu Secondary School
Rainbow Christian Secondary School
Mudio Islamic Seminary
Jifunzeni Secondary School
Kingcollins Secondary School
St. Peter Claver High School
Ilasi High School
Chinangali Secondary School
Rau Secondary School
Faraja Seminary
Feza Boys Secondary School
Star Secondary school
Dar Es Salaam Islamic Secondary
Rashid Mfaume Kawawa Secondary
Canossa Secondary School
Acacia Secondary School
Kashai Secondary School
Haradali Winners Secondary school
Elerai Secodary school
Nyakumbu Girls Secondary School
St. Leonard Co Education Secondary School
Kitungwa Secondary School
Chamazi Day Secondary School
BTOT
Form two New Format Book-keeping Assessment
BTOT
Form two New Format Book-keeping Assessment
Preface
Form two Book-keeping New Format Assessment is the material prepared to help a student in
form one and form two gain enough knowledge in book-keeping through various examinations
constructed with answers
The author wrote this book following the changes that have been made in the form two final
assessment, with the hope of imparting a form 1and 2 students with enough knowledge on how
to handle different questions constructed basing on the new format.
This book is not mainly for only form one and form two students as it covers a lot of questions
which can be helpful to anybody who wishes and is interested to gain knowledge towards
principles of book-keeping and accountancy. All concepts covered within the book are prepared
basing on the principles and concepts of accounting as stipulated by International Accounting
Standard Committee (IASC).
In all these examinations administers have tried to provide students with questions which
measure their highest order of thinking (competence based) as its emphasized in the current
format . It is our hope that this text book will serve as a sound foundation for intermediate and
advanced accounting.
BTOT
Form two New Format Book-keeping Assessment
Cover Page.
BUSINESS TEACHERS OF TANZANIA (BTOT)
FORM TWO NEW FORMAT ASSESMENT 2022
062
BOOK-KEEPING
TIME: 2:30 Hours.________________________________________________
INSTRUCTIONS:
i. This paper consists of sections A, B and C with nine (9) questions.
ii.
Answer all questions in all sections.
iii.
All writings must be in blue or black ink.
iv.
Write your Registration Number on every page of your answer sheet provided.
v.
Calculators, cellular phones and any unauthorized materials are not allowed in the
assessment room.
FOR EXAMINERS USE ONLY
QUESTION NUMBER
SCORE
INITIALS OF EXAMINER
1
2
3
4
5
6
7
8
9
TOTAL
Contents
Acknowledgement. ....................................................................................................................................... i
Preface......................................................................................................................................................... iii
Cover Page. ................................................................................................................................................. iv
Series No. 01 ................................................................................................................................................ 4
Series No. 02 ................................................................................................................................................ 9
Series No. 03 .............................................................................................................................................. 14
Series No. 04 .............................................................................................................................................. 18
Series No. 05 .............................................................................................................................................. 23
Series No. 06 .............................................................................................................................................. 28
Series No. 07 .............................................................................................................................................. 32
Series No. 08 .............................................................................................................................................. 36
Series No. 09 .............................................................................................................................................. 41
Series No. 10 .............................................................................................................................................. 46
Series No. 11 .............................................................................................................................................. 51
Series No. 12 .............................................................................................................................................. 56
Series No. 13 .............................................................................................................................................. 61
Series No. 14 .............................................................................................................................................. 65
Series No. 15 .............................................................................................................................................. 70
Series No. 16 .............................................................................................................................................. 75
Series No. 17 .............................................................................................................................................. 79
Series No. 18 .............................................................................................................................................. 83
Series No. 19 .............................................................................................................................................. 87
Series No. 20 .............................................................................................................................................. 91
Series No. 21 .............................................................................................................................................. 97
Series No. 22 ............................................................................................................................................ 101
Series No. 23 ............................................................................................................................................ 105
Series No. 24 ............................................................................................................................................ 110
Series No. 25 ............................................................................................................................................ 115
Series No. 26 ............................................................................................................................................ 119
Series No. 27 ............................................................................................................................................ 124
Series No. 28 ............................................................................................................................................ 128
BTOT
Form two New Format Book-keeping Assessment
Series No. 29 ............................................................................................................................................ 133
Answers: Series No. 1 ............................................................................................................................. 137
Answers: Series No. 2 ............................................................................................................................. 140
Answers: Series No. 3 ............................................................................................................................. 143
Answers: Series No. 4 ............................................................................................................................. 146
Answers: Series No. 5 ............................................................................................................................. 151
Answers: Series No. 6 ............................................................................................................................. 156
Answers: Series No. 7 ............................................................................................................................. 159
Answers: Series No. 8 ............................................................................................................................. 163
Answers: Series No. 9 ............................................................................................................................. 168
Answers: Series No. 10 ........................................................................................................................... 172
Answers: Series No. 11 ........................................................................................................................... 175
Answers: Series No. 12 ........................................................................................................................... 179
Answers: Series No. 13 ........................................................................................................................... 184
Answers: Series No. 14 ........................................................................................................................... 188
Answers: Series No. 15 ........................................................................................................................... 191
Answers: Series No. 16 ........................................................................................................................... 195
Answers: Series No. 17 ........................................................................................................................... 199
Answers: Series No. 18 ........................................................................................................................... 203
Answers: Series No. 19 ........................................................................................................................... 207
Answers: Series No. 20 ........................................................................................................................... 209
Answers: Series No. 21 ........................................................................................................................... 214
Answers: Series No. 22 ........................................................................................................................... 218
Answers: Series No. 23 ........................................................................................................................... 222
Answers: Series No. 24 ........................................................................................................................... 225
Answers: Series No. 25 ........................................................................................................................... 231
Answers: Series No. 23 ........................................................................................................................... 235
Answers: Series No. 27 ........................................................................................................................... 238
Answers: Series No. 28 ........................................................................................................................... 242
Answers: Series No. 29 ........................................................................................................................... 245
BTOT
Form two New Format Book-keeping Assessment
BTOT
Form two New Format Book-keeping Assessment
Series No. 01
SECTION A (20-MARKS)
1. For each the following item write the letter of the correct answer in the box provided.
(i)
One of the following reasons allows the goods to be returned to the supplier:
a. Durable goods
b. Goods not damaged in transit
c. Expired goods
d. Perishable
(ii)
The cost of borrowing money is called
a. Duty
b. Reward
c. Profit
d. Interest
(iii)
The two types of discounts are
a. Discount allowed and Discount received
b. Debtor’s discount and creditor’s discount
c. Cash Discount and trade Discount
d. Cash Discount and Bank Discount
(iv)
Given a cash float is T.shs. 300,000/= if T.shs. 267,000/= has been spent in the
period, how much will be reimbursed at the end of that period?
a. T.shs. 267,000/=
b. T.shs. 300,000/=
c. T.shs. 33,000/=
d. T.shs.567,000/=
(v)
A daily Book used to record goods sold on credit is called.
a. Credit sales
b. Sales Day Book
c. Sales returns Day Book
d. Sales Ledger
(vi)
Business transactions is classified into: a. Four categories
b. Three categories
c. Two categories
d. None of the Above.
(vii) An act of recording Business transactions in the set and Books in terms of money
or money’s worth is:a. Book-keeping
b. Trial Balance
c. Profit and loss account
d. Balance sheet
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BTOT
Form two New Format Book-keeping Assessment
(viii)
(ix)
(x)
(i)
If expenses exceeds the gross profit, the result will be:a. Net profit
b. Net loss
c. Net expenses
d. Net gross profit
Purchases journal, sometimes is called……………
a. Credit purchases
b. Purchases Day Book
c. Purchases returns journal
d. Cash purchases
Which of the following is a liability?
a. Debtors
b. Buildings
c. Cass in hand
d. Creditors
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
2. Choose the correct term from group B which matches with the explanation in group A and
write the latter below the number of corresponding pending explanation in the box
provided.
GROUP A
GROUP B
i.
The concept which separate business
A. Double Entry Book-keeping
affairs from business ownership
B. Accounting period concept
ii. The concept which assumes that
C. Accrual concept
business operations will continue for
D. Business entity concept
a long period of time
E. Dual aspect concept
iii. The concept under which non F. Historical cost concept
current assets are recorded in the
G. Matching concept
books of accounts at the price paid to
H. Going concern concept
acquire the asset
iv.
The concept under which revenue is
recognized when it is earned and
expenses are recognized when are
incurred
v.
The concept which relates expenses
incurred during the account period
with the revenue recognized during
the same period.
(i)
(ii)
(iii)
(iv)
(v)
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BTOT
Form two New Format Book-keeping Assessment
SECTION B (20- MARKS)
Short answer question:
3. (a) Give the meaning of the following terms:
(i)
Double entry system
(ii)
State Accounting Equation
(iii)
Trial Balance
(iv)
Public Money
(v)
Cost of goods sold
(b) Mention five sources of Government funds
(i)
………………………………………………………………………………………
(ii)
………………………………………………………………………………………
(iii)
………………………………………………………………………………………
(iv)
………………………………………………………………………………………
(v)
………………………………………………………………………………………
4. Complete the following table using accounting equation, Where: Assets = Capital +
Liabilities, Capital = Assets – Liabilities and Liabilities = Assets –Capital.
S/N
1
2
3
4
5
6
7
8
9
10
ASSETS
72,000
144,000
=
20,000
=
100,000
=
500,000
36,000
22,000
LIABILITIES
10,000
=
100,000
5,400
42,200
=
37,000
410,000
=
=
6
CAPITAL
=
88,000
30,000
=
80,000
65,000
44,000
=
12,000
5,000
BTOT
Form two New Format Book-keeping Assessment
5. Complete the following table by indicating the account to be debited and the account to be
credited from each transaction.
S/N
Transactions
E.g: Rent paid for cash
(a)
Cash deposited into bank
(b)
Paid wages for cash
(c)
A cheque received from Nickson
(d)
Purchase of goods for cash
(e)
Bought motor van by cheque
Account to be
Account to be
Debited
Credited
Rent account
Cash account
6. A bank statement is a statement prepared by the banker and sent to the customer showing
the dealings between the bank and the customer; it is very rare to find that the balance
shown in the cash book agrees with the balance shown in the bank statement. In five (05)
points outline the reasons for this to happen.
SECTION C (45 MARKS)
7. Enter the following transactions in cash book of Mr Mtakuja, balance the cash book and
bring down the balances as at 28th February, 2019
2019
Febr.1 Balance b/d
Cash
Tshs. 11,000
Bank
Tshs. 38,500
Debtors:
A. Sima
Tshs. 16,000
P. Gaga
Tshs. 10,000
B. Bahati
Tshs. 12,000
Creditors:
H. Bata
Tshs. 12,000
T. Gulam
Tshs. 20,000
A. Somji
Tshs. 28,000
Febr. 3 P. Gaga settled his account by cheque after deducting 5% cash discount
Febr. 7 Paid amounts of owing to H. Bata by cheque less 21/2 cash discount
Febr. 10 Withdraw Tshs. 15,000 in cash from the Bank for business use.
Febr. 15 Sold goods Tshs. 24,000 on credit to P. Gaga
Febr. 17 A. Sima paid amount owing by cheque less 21/2 cash discount
Febr. 20 Paid wages by cheque Tshs. 31,500
Febr. 22 Paid amounts of owing to T. Gulam by cheque, after deducting 5% cash discount
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BTOT
Form two New Format Book-keeping Assessment
Febr. 25 B. Bahati paid the amount owing by cheque, less 21/2 cash discount
Febr. 28 Paid the amount owing to A. Somji by cheque after deducting 21/2 cash discount
8. From the following details below of Nyakabindi Region prepare trading and profit and
loss account for the year ended 31st December,1987.
Details
Amount
Sales
130,000
Return inwards
10,000
Purchases
72,000
Return outwards
1,500
Stock at start 01/01/1987
12,000
Stock at close 31/12/1987
7,500
Carriage on sales
3,000
Interest received
260
Discount allowed
800
Rent and rates
4960
Salaries
15,600
9. Prepare a trial balance for A. Hamisi and Sons Ltd from the following list of balances as
on 31st January 2019
Tshs
6,300
48,000
9,000
75,000
125,000
250,000
62,000
4,100
8,400
12,700
31,100
6,600
Cash
Sales
Bank
Van
Premises
Capital
Purchases
H. James – A Debtor
Returns outwards
T. Chama – A Creditor
Office Equipment
Returns inwards
8
BTOT
Form two New Format Book-keeping Assessment
Series No. 02
SECTION A 15 MARKS
1. For each of the following items write the letter of the correct answer
i.
The amount required to restore the imprest amount is equal to ------A. The imprest system
B. Imprest amount
C. Amount spent
D. The cash float
ii.
A fund operated by the government to take care of all forms of natural disaster
A. Consolidated fund
B. Civil contingency fund
C. Virements
D. Nugatory fund
iii.
An authority granted by the Minister of finance and planning to transfer approved funds
from one vote to another is called ………..
A. Vote
B. Virement
C. Ambit of vote
D. Appropriation Act
iv.
Business enterprise will not de closed down shortly is known as …………..
A. On-going concern concept
B. Historical concern concept
C. Money measurement concept
D. Dual aspect
v.
The following are example of real account
A. Cash and rent
B. Debtors and creditors
C. Land and furniture
D. Sales and purchases
vi.
Which of the following is an example of nominal account ?
A. Salaries and wages
B. Machine
C. Debtors
D. Sundry creditors
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BTOT
Form two New Format Book-keeping Assessment
vii.
The government financial year of Tanzania starts from
A. A.1st January to 31 December each year
B. B. 1st January to 31 December the following year
C. 1st July to 31st December of the following year
D. 1st July to 30th June of the following year
viii.
The exchequer account is under the control of
A. Accounting officer
B. Controller and auditor general
C. Paymaster general
D. Treasury
ix.
The term “Nugatory expenditure refers to
A. Expenditure incurred on buying
B. Fund into which all government revenue is reserved
C. Money spent on the purchases of government vehicles
D. Payments made for which the government has received no value
x.
Which of the following is listed in the bank statement but not in the customer’s cash
book?
A. Standing order
B. Opening balance in the cash book
C. Uncredited cheque
D. Undebited cheques
2. Choose the correct term from Group B which matches with the explanation Group A and write
its letter below the number of corresponding explanation in the box provided
GROUP A
i.
These are payments made by a firm or person through cheque but
they are not yet sent by customers to the bank to effect those
payments.
ii.
These are payments received by a firm or person by cheque but they
are not yet passed through the banking system.
iii. These are fees deducted by the bank for different services made on
the current account.
iv.
These are payments made by the customer firm direct to the bank
account of supplier firm.
v.
These are payments directed by the account holder to be made by the
bank on his behalf.
10
GROUP B
A. Standing order
B. Dishonored cheques
C. Unpresented cheques
D. Errors
E. Unaccredited cheques
F. Dividends
G. Direct transfers
H. Bank charges
BTOT
Form two New Format Book-keeping Assessment
SECTION B 40 MARKS
3. From the following transaction show action to take in recording the accounts in the double entry
system
TRANSACTION
ACCOUNT TO BE
DEBITED
ACCOUNT RTO BE
CREDITED
Owner put cash into business
Paid a creditor, L. Lihimba by cheque
Bought goods on credit from M.
Wamilika
A debtor Chihamoto paid us in cash
Received cash for rent
Owner withdraws cash from business for
personal use
Paid commission by cheque
Bought furniture on credit from Mtile
Sold goods for cash
Bought goods paying in cash
4. Define the following terms
i.
Error of omission
ii.
original entry error
iii.
Error of commission
iv.
Error of principle
v.
Under casting error
5. Hamisi Traders made the following purchases during the month of Journal 2016.
January5 bought goods from Bagamoyo trader
80 bags of salt @ Tshs 5000/=
40 bags of sugar @ Tshs 6000/=
January 10Bought from Masama wholesaler
20 boxes of books @ Tshs 4000/=
10 pairs of shoes @ Tshs 3000/=
January 15 Bought from Kokoto Ltd
30 bags of sand @ Shs 5500/=
You are required to open:
Purchase Journal
6. List five objective of studying bookkeeping in a business matters
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BTOT
Form two New Format Book-keeping Assessment
SECTION C 45 MAEKS
7. Salvatory enterprises have the following details related to the year of 2021 June 1 st balance
brought down from May
TSHS
Cash ……………………………………………………………………………2,900
Bank ……………………………………………………………….....................65,400
DEBTOTS ACCOUNT
Samatta …………………………………………………………………...120, 000
Alikiba …………………………………………………………………….28, 000
Chama……………………………………………………………………….4, 000
CREDITORS
Bocco ………………………..……………………………………………..60,000
Mayere ……………………………………………………………………..44,000
Morrison…….. ………………………………………………..………….10, 000
June 2 Samatta pays us by cheque, having deducted 2.5% cash discount ….
12,000
June 8 we pay Morrison his account by cheque, deducted 5% cash discount …… 10,000
June 11 withdraw TSH 10,000 cash from bank for business use
June 16 Alikiba pay us his account by cheque, deducting 2.5% cash discount
28,000
June 25 paid insurance in cash …………………………………………………………9,200
June 28 Chma puy us in cash after having deducted 5% cash discount 200 ..…………3,800
June 29 we pay Bocco by cheque less 2.5 % cash discount …………………………..44,000
Required Prepare cash book
8. From the following particulars extracted from the books of John , Prepare an income
statement for the year ending 31th December 2019
Transactions
Shs
Opening stock 1st January 2019
15,000
st
Closing stock 31 December 2019
32,000
Purchases during the year
85000
Sales during the year
225000
Carriage inward
5200
Carriage outwards
2000
Return inwards
15000
Return outwards
25000
Stationery
7000
Insurance
3500
Electricity
2500
Rent
4000
Fumigation
3500
Water bill
2500
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BTOT
Form two New Format Book-keeping Assessment
9. The following information were extracted from ABC traders as at 30th june 2018
S/N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
NAME OF ACCOUNT
Stock at 1.january.2018
Stock .31/12/2018
Purchases
Sales
Motor expenses
Salaries
Rent and rates
Insurance
General expenses
Premises
Motor vehicle
Debtors
Creditors
Cash at bank
Cash in hands
Drawings
Capital
DR
CR
3,249
2,548
11,380
18,462
520
150
670
111
105
1500
1200
1950
1,538
1,654
2,040
895
5,424
25,479
REQUIRED: Re-draft the above trial balance
13
27,917
BTOT
Form two New Format Book-keeping Assessment
Series No. 03
SECTION A ( 15 Marks)
Answer all questions from 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.
(i) A statement showing a list of debit and credit ledger balance is called
A Balance sheet
B Trial balance
D Statement of financial position
C General ledger
(ii) Which of the following is not a source of government revenue?
A Taxes
B Adultery
C Licenses
D Loans
(iii)Which of the following concepts emphasizes that assets and liabilities be recorded at
their acquisition cost?
A Historical cost concept
B Realization concept
C Prudence concept
D Going concern concept
(iv) A government financial year of Tanzania stars from:
A 1st January to 31st December each year.
B 1st January to 31st December the following year
C 1st July to 31st December the following year
D 1st July to 30th June the following year
(v) If the assets of a business amount to Tshs 85,000/= and owner’s capital is Tshs 60,000/=
how much is the liability of the business.
A Tshs 25,000
B Tshs 40,000
C Tshs 145,000
D Tshs 80,000
(vi) Main group of accounts are:
A Income and Expenditure
B Personal, Creditors and Real
C Debtors, Creditors, Real and Nominal D Personal and Impersonal
(vii) What is meant by Book – keeping?
A An art of recording cash transactions
B An art of recording financial business transactions
C An art of recording bank transactions
D An art of recording cheque transactions
(viii) The transfer of goods or services from person to another is called
A Ledger balance B Cash transactions C Transactions
D Credit transactions
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BTOT
Form two New Format Book-keeping Assessment
(ix) Which of the following is not among purpose of preparing a trial balance?
A To determine profit or loss
B To provide a base for preparing financial statements
C To check on arithmetical accuracy of double entry system
D To detect accounting errors
(x) Working capital is a term meaning
A The amount of capital invested by the proprietor
B The excess of the current assets over current liabilities
C The capital less drawings
D The total of fixed assets less current assets.
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.
Column A
i.
ii.
iii.
iv.
v.
Column B
The transaction is posted in the wrong class of account
Errors that cancel out each other.
Incorrect figure is entered in the books of account.
Occurs when incorrect adding up column of figures gives
an answer which is greater than it should be
Occurs when making an entry on only one side of the
account
Errors of complete reversal
Over casting errors
Errors of original entry
Single entry errors
Errors of principle
Compensating errors
Under casting errors
Errors of commission
ANSWER
Column A
Column B
i
ii
iii
iv
V
SECTION B (40 Marks)
Answer all questions from this section
3.Briefly explain any five reasons for the disagreement between cash book balance and bank
statement balance.
(i) …………………………………………………………………………………………
(ii) …………………………………………………………………………………………
(iii)…………………………………………………………………………………………
(iv) …………………………………………………………………………………………
(v) …………………………………………………………………………………………
4. Examine five challenges facing government accounting in Tanzania
(i). …………………………………………………………………………………………
(ii).…………………………………………………………………………………………
(iii). …………………………………………………………………………………………
(iv). …………………………………………………………………………………………
15
BTOT
Form two New Format Book-keeping Assessment
(v). …………………………………………………………………………………………
5.Complete the following table by showing accounts to be debited and which to be credited.
S/N TRANSACTIONS
I
Ii
Iii
Iv
V
ACCOUNT TO BE
DEBITED
ACCOUNT TO BE
CREDITED
Cash withdraw from bank for business use
Payment of rent by cheque
Sales of goods to KC COY.
Cash received from DUBAI COY
Payment of insurance in cash
6. Identify the effect of transaction on components of accounting equations.
S/N
TRANSACTIONS
ASSETS
CAPITAL
LIABILITIES
(i).
Owner puts cash into business
Increase
of Increase of
assets for cash capital
(ii).
Paid a creditor S. Moses by cheque
(iii).
Bought goods on credit from L. Mmbaga
(iv).
A debtor H. Kyenzi paid us by cheque
(v).
Sold goods receiving payment in cash
(vi).
Bought goods making payment in cash
SECTION C (45 Marks)
Answer all questions from this section
7. Nguvu ya Pesa co-operative shop made the following purchases during the month of
August, 2020.
August 1 Bought from Mwagombo
100 bags of Rice @ 550/=
50 bags of sugar @ 750/=
5 Bought from Dons and Sons Ltd.
10 boxes of cooking fat @ 320/=
12 pairs of sandals @ 150/=
10 Bought from Shilabela Traders.
20 pairs of bed sheets @ 170
50 shirts @ 350/=
15 Purchased from Dons and Sons Ltd
2 cartons malaika soap @ 500/=
Required:
(i) Enter up the purchases day book for the month
(ii) Post the items to the suppliers’ account
(iii)Transfer the total to the purchases account
16
BTOT
Form two New Format Book-keeping Assessment
8. Mjimwema’s financial position on 1st January 2019 was as follows:Cash at Bank……………………….4000/=
Stock……………………………….20,000/=
Debtors: Banda.……………………2,000/=
Pande……………………..1,000/=
Creditors: Peter….………………….1,000/=
Motor Van…………………………7,000/=
Premises…………………………….30,000/=
Furniture…………………………….8,000/=
Capital……………………………….70,000/=
January 1 Drew from Bank for office cash……………………..500/=
2 Paid rent for the year by cheque………………………2,400/=
4 Pande paid his account by cash in full and was allowed Shs 200/= discount.
6 Paid Peter by cheque in full settlement of the account……......980/=
7 Sold goods on credit to Manyika………………………………..10,000/=
8 Banda paid his account by cheque in full and was allowed shs 100/= discount.
10 Purchased motor van from Haika………………………………12,000/=
12 Purchased goods on credit from Peter………………………….2,000/=
15 Purchased goods by cheque…………………………………………19,000/=
18 Sold goods on credit to Banda………………………………………5,000/=
20 General expenses in cash……………………………………………100/=
24 Withdrew by cheque for personal use……………………………….500/=
31 Sales banked………………………………………………………14,000/=
Enter the above transactions in the three column cash book.
9. The following information relates to Msamvu sokoni traders as at 31/12/2018
Stock 1st January 2018 was……………………………..Tshs 70,000
Purchases amounted to………………………………….Tshs 350,000
Stock on 31st December 2018 was valued at…………….Tshs 50,000
Sales during the year was………………………………...Tshs 620,000
Carriages on purchases was………………………………Tshs 15,000
Return on sales…………………………………………….Tshs 12,000
Carriage on sales……………………………………………Tshs 8,000
Return on purchases was…………………………………...Tshs 5,000
Salaries and wages………………………………………….Tshs 11,000
Electricity……………………………………………………Tshs 7,000
Commission received……………………………………….Tshs 10,000
Discount allowed……………………………………………Tshs 4,000
Rent…………………………………………………………Tshs 3,000
General expenses amounted to………………………………Tshs 6,000
Required: Prepare income statement for the year ended 31st December 2018.
17
BTOT
Form two New Format Book-keeping Assessment
Series No. 04
SECTION A (15 Marks).
Answer all questions in this section.
1. For each of the items (i)-(x) choose the correct letter among the given alternative and write
its letter beside the item number in the answer sheets.
i)
What is the name of the book of original entry used to record the sale of fixed assets
on credit?
A. Sales ledger
C. Sales ledger
B. General journal
D. Purchases ledger
ii)
The following are sources of government revenue except.
A. Grants and aid
C. Retirement benefits
B. Loans
D. Borrowing
iii)
The cost of putting goods into saleable condition should be charged to
A. Income statement
C. Suspense account.
B. Balance sheet
D. Trial balance.
iv)
A cheque paid by you , but not yet passed through the banking system;
A. Unpresented cheques
C. Dishonored cheque.
B. A credit transfer
D. A standing order
v)
The cost of borrowing money is known as;
A. Tax
C. Interest.
B. Loan
D. Drawings.
vi)
The document which gives the description of goods bought on credit is;
A. Cash receipt
C. Purchases invoice.
B. Credit note
D. Sales invoice.
vii)
The term “expenses” denotes
A. Payment or incurring of the debt for an asset
B. Cost of services used for generating income
C. Asset bought and sold
D. Cost incurred in buying an asset
viii)
A trade discount is best described as;
A. A discount given if the invoice is paid
B. A discount for cash payment
C. A discount given to suppliers
D. A discount given to encourage bulk purchasing.
18
BTOT
Form two New Format Book-keeping Assessment
ix)
Bookkeeping is the branch of accounting which deals with;
A. Analysis and interpretation of data
B. Recording, classifying, summarization of data and interpretation
C. Recording of financial business in the books of accounts
D. Credit transactions of the business.
x)
A statement prepared to show the financial position of the business is known as;
A. Trial balance
B. Balance sheet
C. Journal
D. Ledger
i
ii
iii
iv
v
vi
vii
viii
ix
x
2. Match the explanations of the accounting concept in Column A with the corresponding
names in Column B by writing the letter of the correct response beside the item number in
your answer booklet.
(i)
(ii)
(iii)
(iv)
(v)
Column A
The concept which separates business affairs
from business ownership.
Column B
A. Accounting period concept
B.
The concept which assumes that business
operations will continue for a long period of time C.
without ceasing.
D.
The concept which relates expenses incurred
during the accounting period with the revenue
E.
recognized during the same period.
F.
The period of time that covers a certain
accounting functions being monthly, quarterly
G.
half year or annually.
H.
A set of rules that are universal applied and
followed by an organization when reporting
financial information.
19
Accrual concept
Business entity concept
Dual aspect concept
Matching concept
Going concern concept
Accounting principles.
Money measurement
principle.
BTOT
Form two New Format Book-keeping Assessment
SECTION B (40 Marks).
Answer all questions in this section.
3. (a) Mention five (5) reasons for disagreement between cash book and bank statement
balance.
i)
_____________________________________________________
ii)
_____________________________________________________
iii)
_____________________________________________________
iv)
_____________________________________________________
v)
_____________________________________________________
(b) Mention five source documents used in the business transactions.
i)
____________________________________________________
ii)
____________________________________________________
iii)
____________________________________________________
iv)
____________________________________________________
v)
____________________________________________________
4. Complete the following table and show which accounts are to be debited and which are
credited.
Transactions
Account to be
Account to be
debited
credited
Example:
Furniture A/C
Cash A/C
Bought office furniture for cash
(i) A debtor “ Kamara” pays us by cheque.
(ii) Bought goods for cash
(iii) Paid cash into the bank
(iv) Withdrawing cash from bank for office use
(v) Goods returned by us to Makame
5. From the following information related to Ilham a trader record the following transactions in
the sales journal
May 1:
Sold goods to Hizaah.
20 exercise books @ Tshs. 500
20 boxes of pencil for Tshs. 2,000
May 15:
Sold to Hibba training center.
15 Atlases @ Tshs 1,200
30 Graph papers @ Tshs. 50.
May 25: Invoice issued to Korushusho for goods sold Tshs. 9,000.
20
BTOT
Form two New Format Book-keeping Assessment
6. Rule a suitable petty cash book of Mwananchi in January 2020 with the following
analysis payment columns: Postage, Travelling, sundry expenses and Ledger.
Jan 1: Petty cashier received imprest from Main cashier shs. 40,000.
Jan 2: Paid for stamps shs. 4,000, sugar shs. 8000.
Jan 3: Paid for Daladala shs. 4,500.
Jan 4: Received cash shs. 7,500 from an employee payment voucher No; 8
Jan 5: Paid Juma shs. 10,000, Stationary shs. 8,000.
SECTION C (45 Marks).
Answer all questions in this section.
7. Post the following details into the statement of financial position as at 31st December 2019.
Capital ………………………………………….. 140,000.
Net profit ………………………………………... 60,000.
Drawings ………………………………………… 50,000.
Creditors………………………………………….. 20,000
Loans from NBC …………………………………. 120,000.
Bank overdraft …………………………………….. 40,000.
Machinery ………………………………………… 130,000.
Motor van………………………………………….. 40,000.
Furniture …………………………………………… 25,000.
Premises …………………………………………… 53,000.
Stock ………………………………………………. 17,000.
Debtors …………………………………………….. 15,000.
Cash at bank………………………………………... 30,000.
Cash in hand ……………………………………….. 20,000
8. On 31st December 2019,the cash book balance of Mzee wa Mjegeje was Tshs. 25,370/=
whereas the bank statement showed a credit balances of 25,670/=. In an investigation the
following were discovered:
(a) Cheques not presented for payment Tshs. 12,340/=
(b) Cheques paid into the bank but not credited by the bank Tshs. 12,160/=
(c) Items shown in the bank statement but not yet enered in the cash book:
(i)
Bank charges
Tshs. 240/= (iii) Dividends collected by bank Tshs. 820/=
(ii)
Standing order Tshs. 460/=
Required:
(a) Adjust the Cash Book to show the correct Cash Book balance.
(b) Prepare a Bank Reconciliation Statement starting with the adjusted Cash Book Balance.
21
BTOT
Form two New Format Book-keeping Assessment
9. When extracting the trial balance of Mulisa & Co ltd as at 31st December 2000 it was
observed that the total debits exceeded the total credits by shs 476,000.
Investigations revealed the following errors:
i.
Sales had been overcast by shs 30,000.
ii.
Return outwards account had not been credited with an amount of shs 122,640.
iii.
A payment by debtor of shs 300,000 by direct bank transfer had not been entered
in the debtors account.
iv.
Cash purchases of shs 4,640 had been recorded in the cash book only.
v.
Shs 44,000 received from debtor had been debited to his account.
Required.
a. Show the necessary journal entries to correct the errors.
b. Show the suspense account after taking into account the errors in (a) above.
22
BTOT
Form two New Format Book-keeping Assessment
Series No. 05
SECTION A (15 Marks)
Answer all questions from this section
1. For each of the items (i) – (xv) choose the correct answer from among the given
alternatives and write its letter beside the item number.
(i) Which of the following is not a source of government revenue?
A Taxes
B Adultery
C Licenses
D Loans
(ii)
Which of the following concepts emphasizes that assets and liabilities be recorded at
their acquisition cost?
A Historical cost concept
B Realizationconcept
C Prudence concept
D Going concern concept
(iii)
A government financial year of Tanzania stars from:
A. 1st January to 31st December each year.
B 1st January to 31st December the following year
C1st July to 31st December the following year
D 1st July to 30th June the following year
(iv) If the assets of a business amount to Tshs 85,000/= and owner’s capital is Tshs 60,000/=
how much is the liability of the business.
A Tshs 25,000
B Tshs 40,000
C Tshs 145,000
D Tshs 80,000
(v) What is meant by Book – keeping?
A. An art of recording cash transactions
B. An art of recording financial business transactions
C. An art of recording bank transactions
D. An art of recording cheque transactions
(vi) Which of the following is not among purpose of preparing a trial balance?
A To determine profit or loss
B To provide a base for preparing financial statements
C To check on arithmetical accuracy of double entry system
D To detect accounting errors
(vii) The term “Nugatory expenditure” refers to
A. Expenditure incurred on buying
B. Fund into which all government revenue is reserved
C. Money spent on the purchases of government vehicles
D. Payments made for which the government has received no value
(viii) A purchase of machinery by business and paid by cheque, what will be its double entry?
A. Debit bank account, credit machinery account.
B. Debit machinery account, credit bank account.
C. Debit machinery account, credit cheque account.
D. Debit cheque account, credit machinery account.
(ix) The descending order in which current assets should be shown in the statement of
financial position is……………
23
BTOT
Form two New Format Book-keeping Assessment
(x)
A. Inventory, trade receivable, bank, cash.
B. Cash, bank, trade receivable, inventory.
C. Trade receivable, stock, bank, cash.
D. Inventory, ttrade receivable, cash, bank
Who of the following would receive a discount from your business?
A. Debtors
B. Creditors
C. Suppliers
D. Bank
2. Match the items in Group A with the responses in Group B by writing the letter of
the correctresponse beside the item number.
(i).
Group A
The transaction is posted in the wrong class of account
Group B
A. Errors of complete reversal
(ii).
Correct amount is posted in the correct class of account but in
the wrong person’s account.
(iii). Errors that cancel out each other.
(iv). Occurs when a transaction is completely omitted from the
book.
(v). Occurs when the wrong sequence of the individual characters
within a number are entered.
B. Errors of original entry
C. Errors of recording
D. Errors of principle
E. Compensating errors
F. Transposition errors.
G. Errors of commission
H. Errors of omission
ANSWER
Group A
Group B
I
ii
iii
iv
v
SECTION B (40 Marks)
Answer all questions from this section
3. a. Complete the following table by showing accounts to be debited and which to be
credited.
S/N TRANSACTIONS
ACCOUNT TO BE ACCOUNT TO BE
DEBITED
CREDITED
i
Cash withdraw from bank for business use
ii
Payment of rent by cheque
iii
Sales of goods to RAMSO
iv
Cash received from SECHAMBO
v
Payment of insurance in cash
24
BTOT
Form two New Format Book-keeping Assessment
b. completes the table bellow by indicate the accounts are nominal, real or personal
s/n Name of acconts
Classification
I
Building
Ii
Advertising
Iii Paschal
Iv Furniture
V
RM Kawawa secondary school
4. Consider you’re the qualified accountant. There are certain traders in your village they do
not know if their business makes profit or loss because they do not keep records. Explain to
them five (5) objectives of book-keeping.
5. Briefly explain the five (5) errors which do not affect trial balance.
6.
On 31st December 2021, Brigitha’s bank balance as shown by the cash book was TZS 64,000.
On receipt of bank statement it was found that:a) The bank statement balance was 69,470.
b) A cheque of TZS 7,500 drawn in a favour of a supplier on 28th December 2021 had
not been presented to the Bank payment.
c) The bank had credited TZS 8,200 on 30th December 2021, in respect of dividend
collected, the information not having yet been received.
d) A cheque of TZS 9,500 deposited into a bank on 30th December 2021 had been
credited to the bank statement on 4th January 2022.
e) The bank had debited TZS 230 bank charges on 30th December 2021 but not entered
in the cash book.
f) During December, the Bank had paid TZS 500 for a yearly contribution of Brigitha,
made to Lindi Press Club, as per her standing order. This amount appeared in the
Bank Statement only.
Required:
Prepare bank reconciliation statement start with balance as per cash book.
SECTION C (45 Marks)
Answer all questions from this section
7. Nguvu ya Pesa co-operative shop made the following purchases during the month of August, 2020.
August 1
Bought from RTC Liwale
100 bags of Rice @ 550/=
50 bags of sugar @ 750/=
August 5
Bought from Wamo Stores.
10 boxes of cooking fat @ 320/=
12 pairs of sandals @ 150/=
August 10
Bought from Naluleo Traders.
20 pairs of bed sheets @ 170
25
BTOT
Form two New Format Book-keeping Assessment
50 shirts @ 350/=
August 15
Purchased from Wamo Stores.
2 cartons Malaika soap @ 500/=
Required:
(i) Purchases day book for the month
(ii) Post the items to the suppliers’ account
(iii) Transfer the total to the purchases account
8. Makonji’s financial position on 1st January 2019 was as follows:
Cash at Bank
Stock
Debtors: Feisal Salum
Kisinda
Creditor: Mayele
Motor-van
Premises
Furniture
Capital
Tshs
4,000
20,000
2,000
1,000
1,000
7,000
30,000
8,000
70,000
January1 Drew Cash from Bank for office use
4 Kisinda paid his account by cash in full and allowed discount of
6 Paid Mayele by cheque in full settlement of account
7 Sold goods on credits to Manyika
8 Feisal Salum paid his account by cheque in full and was allowed discount of
10 Purchased motor van from Saido
12 Purchased good on credit from Mayele
18 Sold goods on credit to Feisal Salum
20 General expenses in cash
24 Withdrew cheque for personal use
500
200
980
10,000
100
12,000
2,000
5,000
100
500
Enter the above transactions in the three Column cash book and balance it.
26
BTOT
Form two New Format Book-keeping Assessment
9. The following information relates to Mwagamwaga sokoni traders as at 31/12/2018
Stock 1st January 2008 was
Purchases amounted to
Stock on 31st December 2018 was valued at
Sales during the years was
Carriage on purchases
Return on sales
Carriage on sales
Return on purchases was
Sales and wages
Electricity
Commission received
Discount allowed
General expenses amounted to
Tshs
70,000
350,000
50,000
620,000
15,000
12,000
8,000
5,000
11,000
7,000
10,000
4,000
6,000
Required: prepare income statement for the year ended 31st December, 2018.
27
BTOT
Form two New Format Book-keeping Assessment
Series No. 06
SECTION A (15 MARKS)
1. For each of the items (i)-(x) choose the correct answer from among the given alternatives
and write its letter:
i. Cash discount is described as a reduction in the sum to be paid if payment is made
A. For cash only
B. By cash not cheque
C. Either by cash or cheque
D. For cash not for credit
ii. A credit balance of shs 20,000 on the cash column of the cash book would mean that
A. The business owner has Tshs 20,000 cash in hands
B. The shopkeeper lost Tshs 20,000 from the business
C. The shopkeeper sold goods on credit for Tshs 20,000
D. The business owner spent Tshs 20,000 more than he/she has received
iii. Sales invoice are first entered in the
A. Cash book
B. Purchases journal
C. Sales account
D. Sales journal
iv.
The example of nominal account having credit nature is
A. Sales
B. Discount allowed
C. Purchases
D. Computer.
v.
Another name for two column cash
book is
A. Petty cash book
B. Double column cash book
C. Single column cash book
D. Three column cash book
vi.
At the beginning of accounting year
Kiringa sport club has TZS 14,000 as
non- current assets, TZS 5000 as
current assets and TZS 5000
liabilities. What would be its capital?
A. TZS 4000
B. TZS 14,000
C. TZS 5000 D. TZS 24000
28
vii.
viii.
ix.
x.
A cheque which is not accepted for payment by the bank due to insufficient fund in the drawer’s
bank account is referred to
A. Dishonoured cheque
B. Outstanding cheque
C. Bank lodgement
D. Unrecorded cheque
Which of the following statements is not correct?
A. Assets – Capital = Liabilities
B. Liabilities + Capital = Assets
C. Assets – Liabilities = Capital
D. Liabilities-capital = assets
Which of the following is a liability?
A. Machinery
B. Motor vehicles
C. Account payable for goods
D. Cash at bank
Which of the following combination is a personal account?
A. Rent and Debtor
B. Debtors and drawings
C. Debtors and Rent
D. Drawings and Rent
2. Match the items in LIST A with the responses in LIST B by writing the letter of the correct response
below the corresponding items number in the table provided.
LIST A
LIST B
i.
The amount money or money`s worth
A. Drawings
invested in the business for the
B. Working capital
purpose of making profit
C. Capital
ii.
A document sent by a seller of goods
D. Carriage outwards
to buyer to correct an under-charge in
E. Purchases journal
an invoice.
F. Contra entry
iii. The process of petty cashier being
G. Uncredited cheque
refunded the same amount spent.
H. Double entry
iv.
Is the cheque which is not presented to
I. Imprest system
the bank for payment
J. Standing order
v.
Is the instruction given to the bank to
K. Debit note
make payment on behalf of account
L. Unpresented cheque
holder
M. Credit note
N. Direct deduction
LIST A
i.
ii
iii.
iv.
v
LIST B
29
SECTION B (40 MARKS)
3. Mention four reasons which cause the disagreement between cash book balance and bank statement
balance.
i. ………………………………………………………………………………………
ii.
………………………………………………………………………………………
iii.
………………………………………………………………………………………
iv.
………………………………………………………………………………………
v.
………………………………………………………………………………………
4. Use the knowledge of accounting equation to fill in the gap in the following table
S/N
ASSETS
CAPITAL
LIABILITIES
i
TZS 2,500,000
TZS 1,097,000
TZS
ii
TZS
TZS 10,000,000
TZS 1,193,700
Iii
TZS 3,900,000
TZS
TZS 1,193,700
Iv
TZS25,698,000
TZS 17,947,800
TZS
v
TZS
TZS 17,587,400
TZS 3,412,600
?
?
?
?
?
5. Define the following terms as used in book keeping
i.
Reimbursement
ii.
Trial balance
iii.
Bank reconciliation statement
iv.
Petty cash book
v.
Sales return day book
6. Identify whether the following accounts are nominal, real or personal.
S/N
i
ii
iii
iv
v
vi
vii
viii
ix
x
NAME OF ACCOUNT
Land
Debtor
Advertising
Cash
Machinery
Rent
Purchases
Stock
Sales
Creditors
30
CLASS OF ACCOUNT
SECTION C (45 MARKS)
7. The following is the summary of Babayoyo’s Petty cash transaction for the period of 1st December
2009. Assume that Babayoyo uses the imprest system to manage the petty cash fund
December 1st Received from main cashier TZS 40,000
2nd Paid sweeping charges TZS 5000
4th Bought coffee tea and sugar TZS 6200
7th bought envelopes charges TZS 11,200
10th Paid carriage TZS 7500
18th Bought postage stamps TZS 2500
25rd Bought stationary TZS 4300
27th Paid for stamp duty TZS 700
28th Paid telegram charges TZS 1700
Required: Enter the above transactions into a petty cash book with analysis columns for stationary,
postage and the sundry expenses and show the amount to be restored on 29th Dec 2009.
8. Write up Kwavava’s two column cash book from the following transactions, balance off the account
on 31st January 2017 and bring down the balance on 1st February 2017.
Jan 1. Started business with TZS 300,000 in the bank and TZS 150,000 cash.
2. Bought goods for cash TZS 23,000
3. Paid rent in cash TZS 10,000
6. Sold goods on Credit to Vivian worth TZS 14,000
9. Received cash from Vivian TZS 14,000
12. Cash sales TZS 105,000
19. Paid rates by cheque TZS 2,000
22. Bought furniture in Cash TZS 55,500
26. Sold goods and received cheque TZS 50,000
27. Cash paid into bank TZS 30,000
28. Cash paid to Mavere TZS 75,000
28. Cashed cheque for office use TZS 45,000
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.
TZS
Inventory …………………………………………………………… 70,000
Purchases amounted to …………………………………………………350,000
Sales ……………………………………………………………………620,000
Return on sales ………………………………………………………….12,000
Carriage outward ………………………………………………………. .8,000
Carriage on purchases ………………………………………………….. 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
Required:
Prepare the income statement for the year ended 31st December 2014.
31
Series No. 07
SECTION A: (20 Marks)
1. For each of the items (i)-(xv) , choose the correct answer from among the given alternatives and
write its letter in the box provided.
(i)
Which of the following is best describes as fixed assets?
A. Expensive items bought for the business
B. Items having long life and not bought for resale
C. Items which will not wear out quickly
D. Items bought to be used by the business
(ii)
What is a cash receipt?
A. Is a documentary evidence for cash paid
B. Is a documentary evidence for sale of goods
C. Is a documentary evidence for cash received
D. Is a documentary evidence for purchase of goods
(iii)
How does the contra entry occur?
A. When double entry is completed within the cash account
B. When double entry is completed with the bank account
C. When the double entry is completed within the same book
D. When double entry is completed within the same account
(iv)
Which of the following should not be called sales?
A. Sales of unwanted furniture
B. Sales of goods on credit
C. Cash sales
D. Sales of goods
(v)
The following are sources of documents:
A. Sales, Credit note, Cheques
B. Cheques, Invoice, Cheques paid
C. Credit note, Debit note,Cash
D. Invoices, Cash receipt, Debit note
(vi)
In which column do need to record the discount associated with a creditor?
A. Discount allowed
B. Discount received
C. Credit bank
D. Payments
(vii) Which of the following is given to traders only?
A. Cash discount
B. Trade discount
C. Quantity discount
D. Settlement discount
(viii) Working capital means
A. Total of fixed assets plus current assets
B. Excess of the current assets over current liabilities
C. Amount of capital invested by the proprietor
D. Capital less drawings
32
(ix)
The descending order in which current assets should be shown in the balance sheet are:
A. Cash, bank, debtors and stock
B. Stock debtors, cash and bank
C. Stock, debtors, bank, and cash
D. Cash, debtors, bank, stock
(x)
Which of the following statement is incorrect?
A. Assets – capital = liabilities
B. Liabilities + capital = assets
C. Liabilities + assets = capital
D. Assets – liabilities =capital
2. Match the explanation of accounting concept in Column A with the corresponding names in
Column B by writing the letter of the correct response beside the item number in box provided,
COLUMN A
COLUMN B
(i)
The concept which separate business
A. Dual aspect concept
affairs from the business ownership
B. Accounting period
(ii)
The concept which assumes that business
concept
operation will continue for long period of
C. Business entity concept
time without ceasing
D. Accrual concept
(iii) The concept under which non- current
E. Historical cost concept
assets are recorded in the books of
F. Going concern concept
accounts at the price paid to acquire the
G. Matching concept
asset.
(iv)
The concept which relates expenses
incurred during the accounting period
with the revenue recognized during the
same period.
(v)
The concept under which revenue is
recognized when its earned and expenses
are recognized when they are incurred
(i)
(ii)
(iii)
(iv)
(v)
SECTION B (40 Marks)
Attempt all questions from this section
3. Juma is a form one student at Mtakuja secondary school whoever she is in dilemma to go science or
studying book keeping. Briefly elaborate to her on how book keeping would contribute in her life
with relevant examples
4. Briefly explain any five reasons why some people returns goods to their suppliers
5. An error is mistake committed by a person either in recording either due to insufficient knowledge,
carelessness and computer defaults. Briefly describe any five (5) errors that can revealed by the trial
balance.
33
6. Financial information are very important in any business are co-parties of the business might need
it.Give out any five (5) five parties that might find financial information useful.
SECTION C (45 Marks)
Answer all questions on this section
7. From the following information of Mzamza shopping Centre, Prepare the Bank and Cash Accounts
and balance off the accounts at 30th April 2o18.
DATE
1st April
2nd April
3rd April
4th April
5th April
7th April
9th April
11th April
15th April
16th April
19th April
22th April
26th April
30th April
30th APril
Started business with capital in cash
Paid rent by cash
Adolf lent Mzamza and paid directly into her bank account
Mzamza paid Nyanza by cheque
Cash sales
Pendo paid Mzamza
Mzamza paid Kitambi in cash
Cash sales paid direct into bank
P. Mkota paid Mzamza in cash
Mzamza took out of cash till and paid it into the bank
account
Mzamza repaid Kapiga by cheque
Cash sales paid direct into the bank
Paid motor expenses by cheque
Withdrew cash from the bank for business use
Paid wages in cash
TZS
200,000
46,000
400,000
172,000
38,000
68,000
184,000
302,000
192,000
20,000
100,000
24,400
15,000
40,000
64,000
8. Luanda provision store had the following balances on 1st May 2017
Cash Tshs. 29,000
Bank Tshs. 654,000
Debtors:
K. Ochola
Creditors
tsh. 120,000
T. Oloo
tsh. 60,000
S. Ayako
Tsh.280,000
Kairo Distributors
tsh. 440,000
J. Mango
tsh. 40,000
Makori investment Tshs. 100,000
During the month, the following transactions took place:
May 2: K . ochola paid his account by cheque less 2.5% cash discount.
May 3: paid Makori investments their account by cheque less 5% discount.
May 8: Withdrew Tsh. 100,000 cash from the bank for business use.
May 11: S. Ayako settled her account by cheque less 2.5% Cash discount
May 15: paid wages in cash Tsh. 90,000
May 20: J. Mango paid his account in cash deducting 2.5% cash discount
34
May 25: Bought furniture and fittings and paid by cheque tsh. 250,000
May 28 Cash sales Tshs. 250,000
May 29: Deposited Tsh. 250,000 from the cash till into the business bank account
May 29: paid T. Oloo in cash , less a cash discount 5%.
May 30: Paid Kairo distributors by cheque less 5% cash discount
Required.
Open cash book to record the above information.
9. The following is the bank statement of Salum for the month of Dec 2012
Date
Particulars
DR
CR
Balance
01.12.2012
Balance b/d
4,000 DR
05.12.2012
Kulwa and Dotto Company
1,000
5,000 DR
10.12.2O12
Cheque
22,00
2,800 DR
15.12.2012
Morrison
2,500
5,300 DR
18.12.2012
Bank charges
1,300
6,600 DR
20.12.2012
Dividends
1,500
5,100 DR
25.12.2012
Standing order
500
5,600 DR
30.12.2012
Credit transfer
3,000
26,00 DR
31.12.2012
Cheque
600
2,000 DR
Additional notes:
i)
Cash book opening balance 1st December, 2012 was 4,000/=( credit balance )
ii)
Deposit in transit at 31st December, 2012 Mathias 1,200/=
iii)
Outstanding cheques – Marwa 3,500/=
Required:
From the above details
(a) Draw adjusted cash book
(b) Prepare bank reconciliation statement, starting with adjusted cash book balance.
35
Series No. 08
SECTION A 15 MARKS
1. For each of the items (i) - (xv) choose the correct answer from among the given alternatives and
write its letter beside the item number
i.
Carriage inwards is added to the purchases in the income statement because:
A. It is an expense connected with buying goods
B. It should not go in the statement of financial position
C. It is not part of motor expenses
D. Carriage outwards goes in the income statement as an expense
E. It is purchases on credit
ii.
TZS 500 cash taken from the cash till and banked is entered:
A. Debit cash column TZS 500: Credit bank column TZS 500
B. Debit Drawings TZS 500: Credit cash column TZS 500
C. Debit bank column TZS 500: Credit cash column TZS 500
D. Debit cash column TZS 500: Credit cash column TZS 500
E. Debit bank column TZS 500: Credit bank column TZS
iii.
Sales invoices are first entered in:
A. The cash book
B. The purchases journal
C. The sales account
D. The sales Ledger
E. The sales journal
iv.
Give a purchase invoice showing 5 items of TZS 800 each, less trade discount of 25%
and cash discount of 5%, if paid within the credit period, your cheque would be made
out for:
A.
TZS 2,850
B.
TZS 2,800
C.
TZS 2,600
D.
TZS 3,000
E.
None of these
v.
The two column cash book records
A.
cash and credit transactions
B.
cheque, cash and trade discount
C.
cash and cheque transactions
D.
cash transactions, cheque transactions and discount
E.
Credit transactions, cash transactions and cash discounts.
vi.
A firm bought a machine for TZS 32,000. It is to be depreciated at rate of 25%
using the reducing balance method. What would be the remaining book value after 2
years?
A.
TZS 16,000
B.
TZS 24,000
C.
TZS 18,000
D.
TZS 12,000
E.
Some other figures
36
vii.
When a customer returns goods previously sold to him the shopkeeper will use a
document called:
A. Invoice
B. Credit note
C. Pay in slip
D. Order note
E. Debit note
viii.
Which one of the following would you not take into account in calculating working
capital?
A. Cash
B. Debtors
C. Motor vehicles
D. Creditors
E. Inventories
ix.
Which of the following is NOT an asset?
A.
Building
B.
Loan from K.Juma
C.
Accounts receivable
D.
Cash balance
E.
Inventories
x.
The correct method of calculating cost of goods sold is;
A.
Closing stock +purchases –opening stock
B.
Opening stock+ closing stock –purchases
C.
Closing stock+ purchases +opening stock
D.
Opining stock- purchases + closing stock
E.
Opening stock + purchases – closing stock
2. Match the items in list A with response in list B by writing the letter of the correct response beside
the item number in the answer sheet provided:
List A
List B
i. Implies that assets are normally shown at cost price, which A. Dual aspect
is the basis for assets valuation.
B. Business entity
ii. Accounting concept said that accounting information is C. Going concern
measured in monetary units.
D. Historical cost
iii. Implies that the affair of the business are to be treated as
concept
being quite separate from the non business activities of its E. Double entry
owner
F. Money
iv. Implies that the business will continue to operate for the
measurement
foreseeable future
G. Consistency
v. Implies that every business transaction is recorded twice
H. Single entry
37
SECTION B (40 MARKS)
3. Define the following terms:
i. Credit transaction
ii. Business transaction
iii. Balance sheet
iv. Subsidiary books
v. Trial balance
4. In bank reconciliation, the bank statement balance is reconciled with the cash book balance in the
client’s books of accounts, resulting into the tallying of the two balances, where the calculated
adjusted bank balance should be equal to the figure of the adjusted cash book balance.” In light of
this statement, explain five advantages bank reconciliation to the business firm.
5. (a) Complete the following table by indicating the account to be debited and the account to be
credited from each transaction. Part(A) is given as an example.
S/N Transactions
i
ii
iii
iv
v
Payment for rent in cash
Bought goods for cash
Paid transport charges in cash
Sold goods for cash
Paid wages in cash
Bought furniture for cash
Account to be
debited
Rent account
Account to be
credited
Cash account
(b) Identify whether the following accounts are nominal, real or personal.
S/N
i
ii
iii
iv
v
NAME OF ACCOUNT
Land
Debtor
Advertising
Cash
Machinery repair
CLASS OF ACCOUNT
6. Show where the original information in the books of prime entry are to be found:
Books of prime entry
Eg: Sales Journal
i.
ii.
iii.
iv.
Document / Source of information
Answer : Sales Invoices
Purchases Journal
Return inwards Journal
Return outwards Journal
Cash book
38
SECTION B 45 MARKS
7. You are given the following Bank Statement of Bahatisha Co. Ltd.
Date
Particulars
Folio
DR
CR
Balance
1998
1-Mar
Balance
b/f
51,970 DR
8-Mar
M. Tabu
1,220
53,190 DR
16-Mar
Cheque
2,440
50,750 DR
20-Mar
J. Bahari
2,080
52,830 DR
21-Mar
Cheque
3,330
49,500 DR
31-Mar
Traders Credit
570
48,930 DR
31-Mar
Standing order
490
49,420 DR
31-Mar
Bank Charges
280
49,700 DR
The following extract of a cash book is also available
CASH BOOK (Bank Column)
Date
Particulars
Folio
Amount
1998
Ndendesi, F.
3-Mar
2,440
Kulwa,
A
21Mar
3,330
1,600
31-Mar Hamis, s.
31-Mar
Date
1998
1Mar
6-Mar
30Mar
Particulars
Folio
Balance
M. Tabu
J. Bakari
J. Shoo
b/f
Amount
51,970
1,220
2,080
4,900
30Mar
Balance
c/d
52,800
60,170
60,170
Required: Prepare the Bank Reconciliation statement as at 31 March, 1998, starting with the
balance as per cash book. (Do not adjust the cash book)
8. Prince, a wholesaler, made the following sales during the month of April 2021:
April 1. Sold goods to Junior:
10 dozen of vitenge at TZS 8,000 a dozen
25 dozen of khanga at TZS 10,000 dozen
April 5. Sold goods to Mercy:
100 pairs of shoes at TZS 2,000 a pair.
200 pairs of boots at TZS 3,000 a pair
April 12. Sold goods to Baraka:
100 dozens of exercise books at TZS 3,000 a dozen
200 reams of papers at TZS 1,500 each.
April 15: Sold goods worth TZS 5,000 to Neema
April 22: Sold goods to Star Book store:
39
200 advanced leaner’s dictionaries at TZS 2,500 each.
800 fiction books at TZS 500 each.
Record the given transactions in the Sales day book for the month of April 2021, and post them to
the respective ledger accounts.
9. Monica, a sole trader, commenced her business with Capital TZS 200,000 in cash and TZS 150, 000
at bank in 1st April 2021.
April 3. Bought goods for cash TZS. 100,000 and by cheque TZS. 90,000
5 Sold goods for cash TZS. 300,000; by cheque TZS. 200,000
10 Banked cash TZS. 250,000
14 Received Loan from Ipyana cash TZS. 50,000; by cheque TZS. 40,000
20 Paid wages for cash TZS. 50,000
22 Bought goods for cash TZS. 150,000; by cheque TZS. 100,000
25 Cash sales TZS. 450,000
26 Paid insurance by cheque TZS. 25,000
27 Withdraw cash from bank TZS. 100,000 for business uses
28 Sold goods for cash TZS. 150,000, by cheque TZS. 100,000
Required:
Enter above transactions into a Two column cash book, balance the cash book and bring down the
balances.
40
Series No. 09
1. For each of the following questions (i)-(x), choose the most correction option and write its letter
besides the question.
i. a subsidiary book that records transactions that owing to their nature are inadmissible to any
other book of prime entry is
A. General journal.
B. Sales day book.
C. Sales journal.
D. Purchases day book.
E. Purchases journal.
ii.
the correct entry to record cash paid in buying goods meant for resale is
A. debit goods account and credit cash account
B. debit cash account and credit Goods account
C. dr. purchases account and credit creditor’s account
D. debit purchases account and credit cash account
iii.
Which of the following will have a decreasing effect on the existing liability of creditors in a
firm.
A. Purchase using cash
B. Returns inwards
C. Payment to creditors
D. Sale on a cash basis
iv.
Government expenditures on items from which the government attains no value are called.
A. Development expenditure.
B. Recurrent expenditure.
C. Capital expenditure.
D. Nugatory expenditure.
v.
Cheques issued to creditors for payment and are not yet debited in the bank statement are
referred to as
A. Uncredited cheques.
B. Un presented cheques.
C. Direct debits
D. Direct credits.
vi.
The value of goods available at the start of an accounting period but were purchased in the
course of the previous accounting period are known as
A. Purchases.
B. Opening stock.
C. Closing stock.
D. Average stock.
41
vii.
Gloria sold goods worth 10,000/= to pearl on credit and were neither recorded in sales
account nor in pearl’s account. This represents an error of
A. Error of commission.
B. Error of omission.
C. Error of principle.
D. Error of complete reversal of entries.
viii.
A credit balance in the bank account represents
A. An amount owing to the firm.
B. An amount owing to the bank.
C. An amount owing to the government.
D. An amount owing to the debtors.
ix.
The arithmetic accuracy of the double entry system is tested by preparation of
A. Income statement.
B. Statement of financial position.
C. Trial balance.
D. Balance sheet.
x.
The value of goods or money taken out of the business by the owner for his or her own use
are known as
A. Purchases
B. Stock
C. Drawings
D. Average stock.
2. Match the items in list A with those in list B.
List A
i. The business is believed to continue in
existence in the near foreseeable future.
ii. When recording the transactions of the
business, private transactions of the owner are
excluded
iii. Assets and liabilities of the business are
recorded at their acquisition cost in the books
of account regardless of their current market
value
iv.
Transactions are recorded twice in the books of
account
v. The transactions recorded in the books of
account are quantified into monetary terms.
Answers
Column A
Column B
i
ii
iii
42
List B
A. Going concern
concept.
B. The concept of
business entity
C. Matching concept
D. Historical cost
concept
E. Accrual concept
F. Money measurement
concept
G. Duality concept
H. Prudence concept.
iv
v
3. Using your knowledge of the accounting equation complete the table below by filling in the missing
figures.
Capital
Liabilities
Assets
…………………….
6,800
40,000
……………………
17,600
46,000
6,400
………..……
38,400
13,000
………………….
16,200
34,600
15,800
………………..
103,800
37,000
…………………
………………….
33,800
110,000
17,200
8,600
………………….
57,000
…………………….
72,200
124,000
…………………….
176,000
4. The government of Tanzania requires revenue to finance its expenditures. These funds can be raised
both internally and externally. Give any 5 ways the government may raise funds internally.
5. Differentiate between the following terms as they are used in bookkeeping.
a) A vote and ambit of vote
b) Debit note and credit note
c) Appropriation act and supplementary appropriation act
d) Return out wards and carriage outwards
6. An inexperienced accounts clerk recorded cash transactions in the cashbook erroneously. As a
bookkeeping expert, rearrange the cashbook and balance it off.
Date detail
folio
1/2
2/2
3/2
4/2
b/d
6/2
Balance
sales
Rent
Jayden
(creditor)
drawings
cash
bank
date
detail
folio
cash
50,000
100,000
10,000
7/2
Balance
wages
sales
shalom
(debtor)
capital
b/d
15,000
1/2
2/2
2/4
2/5
10,000
10,000
43
Bank
10,000
75,000
30,000
50,000
SECTION C (45MARKS).
7. Omega limited is a hardware retail outlet in Mwanza town. The firm had the following transaction
with the different debtors in the month of December 2020.
Date
debtor
items invoiced.
st
1
pearl
- 4 bags of cement at 20,000/=@
-5 tins of paint at 15,000/=@
-10 kgs of nails at 50,000/=
-less 5% cash discount in 2 weeks.
4th
Shalon
7th
Britney
-10 steel rods at 10,000/=@
-15 paint brush at 5,000/=@
-4 rollers at 10,000/=
- less 10% cash discount in 2 weeks
- 10 tins of paint at 15,000/=@
-20 steel rods at 10,000/=@
-5 tins of paint at 15,000/=@
-less 10% cash discount in 2 weeks.
Record the following the above transactions in the appropriate book of prime entry and post entries
in the individual accounts as well as in the general ledger.
8. The accounting period of Victoria limited ends on the 31/12 every year. For the year ending
31/12/2021 the following trial balance was prepared.
s/n
Details
Debit
Credit
1
Capital and drawings
10,000
200,000
2
Sales and purchases
150,000
400,000
3
Discounts
5000
15,000
4
Returns
17,000
20,000
5
Motor van
50,000
6
Furniture
70,000
7
Carriage in wards
7,000
8
Carriage outwards
9,000
9
Salaries
100,000
10
Rent
80,000
11
Debtors and creditors
100,000
20,000
12
Advertising
2,000
13
Opening stock
40,000
14
Travelling expenses
15,000
15
Total
655,000
655,000
Closing stock was valued at 50,000/=
Required
Prepare Victoria Limited’s income statement for the year ending 31/12/2021.
44
9. The following information has been extracted from the books of Familia yetu limited for the month
of March.
Dr.
Cashbook (bank column only).
cr
March 4th Sales
40,000
March 1st Balance b/d
70,000
March 7th
50,000
March 2nd Purchases
80,000
30,000
March 6th Elly
41,000
4,000
Brenda
March 10th Peron
March 15th Ambrose
57,000
March 9th Roy
March 16th Immy
46,000
March 31st balance c/d
March 19th Rose
25,000
53,000
______
________
248,000
248,000
Bank statement
Date
March 1st
March 3rd
March 5th
March10th
March 10th
March 12th
March 17th
March 17th
March 31st
March 31st
Details
Balance b/d
Purchases
Sales
Dividends
Tanesco
Credit transfer
Peron
Ambrose
Bank charges
Interest
Debit
Credit
80,000
40,000
10,000
20,000
80,000
30,000
57,000
17,000
5,000
Balance
70,000 dr
150,000 dr
110,000 dr
100,000 dr.
120,000 dr.
40,000 dr.
10,000 dr.
47,000 cr.
30,000 cr
35,000 cr.
Required
a) Prepared an adjusted cashbook.
b) Prepare a bank reconciliation statement starting with the balance as per bank statement.
45
Series No. 10
SECTION A (15 Marks)
1. For each of the items (i) – (x) choose the correct answer from among the alternatives and write its
letter in the space provided;
i.
Which of the following best describes a trial balance?
A. It is a list of all ledger accounts.
B. It is a list of non – current assets.
C. It is a list of ledger accounts balances.
D. It shows the financial position of the business.
ii.
(
)
(
)
A credit balance in a bank account shows;
A. The amount available at the end of the period.
B. The amount that had been overspent at the end of the period.
C. The total amount paid out at the end of the period.
D. The total amount received at the end of the period.
iii.
iv.
v.
A cheque paid by a customer but not yet passed through the banking system is called?
A. Unpresented cheque.
C. Stale cheque.
B. Dishonored cheque.
D. Uncredited cheque.
(
)
(
)
(
)
A petty cash book is used for recording;
A. Cash payments.
C. Bank payments.
B. Small cash payments.
D. Small bank payments.
Which of the following is one of the objective of studying book – keeping;
A. Avoiding tax payment.
B. Providing employment opportunity.
C. Determining profit and loss.
D. Selling of the goods.
vi.
If the assets of a business amount to Tzs. 85,000/= and owner’s capital is Tzs. 60,000/=,
how much is the liability of the business?
vii.
viii.
A. TZS. 25,000/= .
C. TZS. 45,000/=.
B. TZS. 40,000/=.
D. TZS. 80,000/=.
(
)
(
)
The cash or goods taken out of the business for private uses are known as;
A. Capital.
C. Assets.
B. Profit.
D. Drawings.
Whenever cost of goods sold is greater than sales the outcomes present;
A. Gross loss.
C. Net profit.
46
B. Gross profit.
ix.
D. Net loss.
An officer who controls public money is known as;
A. Receiver of revenue.
B. Authorized officer.
C. Accounting officer.
D. Paymaster general.
x.
(
)
Given a desired cash float of TZS. 70,000/=, if Tzs. 54,100/= is spent in the period, how
much will be reimbursed at the end of the period?
A. TZS. 54,100/=
C. TZS. 15,900/=
B. TZS. 70,000/=
D. TZS. 112,410/=
(
)
2. Match the items in List A with the responses in List B by writing the letter of the correct response
below the item number in the table provided;
LIST A
i.
ii.
iii.
iv.
v.
LIST B
A book of prime entry used to record all transactions
which cannot be recorded in any other books of
prime entry.
The part of books of prime entry used to record
many small payments and of high frequency made in
cash.
A book of prime entry used to record all goods
bought on credit.
A document which provides information necessary
for recording transactions in sales day book.
A book of prime entry which is used to record all
receipts and payments.
Items
i
ii
iii
iv
V
Answer
SECTION B (40 Marks)
3. Mention five (5) sources of government revenue.
a) ____________________________________
b) ____________________________________
c) ____________________________________
d) ____________________________________
e) ____________________________________
47
A.
B.
C.
D.
E.
F.
G.
An invoice.
Journal proper.
Debit note.
Petty cash book.
Sales journal.
Cash book.
Purchases journal
4. For each of the items (i) – (v) compute the missing figure and write them in the space provided;
S/NO
(i)
(ii)
(iii)
(iv)
(v)
ASSETS
25,000
_____________
39,000
25,600
____________
CAPITAL
10,970
10,000
_____________
17,900
17,500
LIABILITIES
_____________
11,900
11,930
_____________
34,000
5. Identify the type of error in the following transactions from the books of H.Hossiana.
i.
A machine purchased for Tzs. 12,000/= had been debited to the purchases account.
__________________________________
ii.
Goods purchased from Kimaro for Tzs. 15,000/= were credited to the account of Kimario.
_________________________________
iii.
Cash sales to Andrew for Tzs. 50,000/= was omitted from the books of account.
________________________________
iv.
Goods sold to Johana for Tzs. 950,000/= was entered in the sales day book as Tzs,
590,000/=. _______________________________
v.
Wages paid for repairing furniture of Tzs. 55,000/= was debited in wages account.
______________________________
6. From the following statements show which account is to be debited and which is to be credited.
i.
Purchased machinery by cash.
Dr ______________________,
ii.
Received cash from Asha.
Dr ______________________,
iii.
Cr ________________________
Withdrew cash from bank for office use.
Dr ______________________,
v.
Cr ________________________
Paid rent by cheque.
Dr ______________________,
iv.
Cr ________________________
Cr ________________________
Paid a creditor, Mr. Madai by cash.
Dr ______________________,
Cr ________________________
48
SECTION C (45 Marks)
7. Mr Cherry an accountant with Savutu General Supplies was issued with an imprest of Tzs.
150,000/= to enable him pay official visit to Dodoma for five days. Upon his return he submitted
the following receipts showing how he had spent the money;
2020
February 1:
2:
Transport Tzs, 18,000/=, Meals Tzs. 7,500/=, Stationery Tzs. 1,000.
Accommodation Tzs. 24,000/=, Meals Tzs 5,000/=, Telephone Tzs. 3,000/=,
Transport Tzs. 2,000/=.
3:
Meals Tzs.7,500/=, Accommodation Tzs. 24,000/=, Stationery Tzs. 1,500/=,
Telephone Tzs. 4,200/=.
4:
Stationery Tzs. 2,000/=, Transport Tzs. 2,500/=, Meals Tzs. 5,000/=
Accommodation Tzs. 13,000/=.
5:
Meals Tzs. 2,500/=, Transport Tzs. 20,000/=, Telephone Tzs. 1,000/=
You are required to;
a) Prepare a petty cash book on the imprest system, relating to Mr. Cherry expenditure having
analysis columns for Accommodation, Meals, Telephone, Transport and Stationery.
b) Show how much money is needed to restore the imprest on 7th February, 2020.
8. The following are extracts from the cash book and the bank statement of LEWIS Stationery. You
are required to;
a) Write up the cash book up to date.
b) Draw up a bank reconciliation statement as on 31st December, 2019 (starting with balance as per
adjusted cash book)
LEWIS STATIONERY
DR
CASH BOOK
Times
2020
01/12
07/12
22/12
31/12
31/12
Details
Balance
T.J. Master
J. Ellis
K. Wood
M. Barret
1/1/2021 Balance
Folio Amount
b/d
b/d
174,000
8,800
7,300
24,900
17,800
232,800
183,100
49
Date
2020
08/12
15/12
28/12
31/12
CR
Details
A. Dylan
R. Mason
G. Small
Balance
Folio
Amount
c/d
34,900
3,300
11,500
183,100
232,800
BANK STATEMENT
Date
2020
01/12
07/12
11/12
20/12
22/12
31/12
31/12
Details
Balance b/d
Cheque
Dylan
R. Mason
Cheque
Credit transfer
Bank charges
Dr
Cr
8,800
34,900
3,300
7,300
5,400
2,200
Balance
174,000
182,800
147,900
144,600
151,900
157,300
155,100
9. From the following balances prepare the statement of financial position of Hillary Philipo as at 31st
December, 2018.
TZS
Cash in hand
3,000/=
Debtors
397,000/=
Stock
143,000/=
Bank overdraft
145,000/=
Creditors
202,000/=
Motor van
70,000/=
Furniture
40,000/=
Capital
240,000/=
Drawings
96,000/=
Net profit
162,000/=
50
Series No. 11
SECTION A: (15 MARKS)
Answer all questions.
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.
i)
The following are the most common users of financial statements excepts;
A. Owners and employee
B. Government and investors
C. Banks and customers
D. Teachers and students
ii)
(
)
Form one students are arguing on the primary and basic reason of preparing a trial balance. As
form two student, choose for them the basic reason for writing up a trial balance among the
following reasons
A. A trial balance issued for internal control as back up document.
B. A trial balance is used as a tool for preparing financial statement.
C. A trial balance is used to present a list of balances at one place.
D. A trial balance is used to check arithmetical accuracy of double entry. (
iii)
)
Fatma, a petty cashier received Tshs. 100,000 cash float; She spent Tshs. 75,000 and received
Tshs. 8,000 from an employee for telephone call during the week. How much will be restored?
A. Tshs. 75,000
B. Tshs. 25,000.
C. Tshs. 33,000
D. Tshs. 108,000
iv)
(
)
What is the going concern principle?
A. Accounting records are prepared assuming that the business will continue to operate in the
foreseeable future.
B. Income and expenses should be accounted for in the same way they were accounted for in
previous periods.
C. Profit should not be anticipated and losses should be written as soon as they are taken.
D. Revenue and costs should be recognized as they are earned or incurred, not when the money
is received or paid.
v)
(
Carriage inwards is charged to the trading account because
A. It is an expense connected with buying goods
B. It should not go in the balance sheet
51
)
C. It is not part of the motor expenses
D. Carriage outwards goes in the profit and loss account
vi)
(
)
(
)
(
)
(
)
(
)
(
)
A debit balance of Tshs. 1000 in the cash account shows that
A. Tshs. 1000 was the totals of the cash paid out
B. Cash has been overspent by Tshs. 1,000
C. There was 1000 cash in hand
D. The total of cash received was less than 1000
vii)
If we take goods for personal use we should debit
A. drawings account, credit purchases account
B. purchases account, credit drawings account
C. drawings account, credit stock account
D. sales account, credit stock account
viii)
Suppliers’ personal account are found in the
A. General ledger.
B. Purchases ledger.
C. Sales ledger.
D. Private ledger.
ix)
Which of the following should be entered in the Journal?
A. Payment for cash purchases.
B. Fixtures bought on credit.
C. Credit sale of goods.
D. Sales of surplus machinery.
x)
Which of the following is a liability?
A. Cash balance
B. Loan from Asha
C. Debtors
D. Premises
52
2. Match the items in LIST A with response in LIST B by writing the letter of correct response beside the
item number
LIST A
LIST B
i. The business affairs to be quite separate from the
A. Historical cost concept
owners affairs.
B. Accrual concept
ii.
The business should record its assets at original price.
C. Money measurement
iii. Transactions should be recorded in the accounting
concept
periods when they actually happen, not when cash
D. Dual concept
changes hand.
E. Going concern concept
iv.
The business should be record items stated in
F. Business entity concept
monetary terms.
G. Matching concept
v.
The business is represented by assets and liabilities
H. Money concept
but they are always opposite and equal.
I. Time period concept
SECTION B: (40 MARKS)
Answer all question from this section.
3. Write short notes on the following terms;
a) Controller and auditor general
b) Exchequer account
c) Nugatory expenditure
d) Ambit of vote
e) Public money
4. a)
Accounting records provide information to various interested parties (users) and serve
very useful purposes in the business. Identify five (5) users of accounting information.
b)
When comparing the balance at bank as shown in the cash book with that given in the bank
statement issued by the bank, it is more likely that these two balances may not agree.
Mention
five reasons for the disagreement.
5. Complete the following table by indicating the account to be debited and account to be credited from
each of the transaction. Part A is given as an example.
S/N
Transactions
(i)
(ii)
(iii)
(iv)
(v)
Payment for rent in cash
Bought goods for cash
Paid transport charge in cash
Sold goods to Amina
Paid wages by cheque
Bought furniture from Kidawa
Account to be
debited
Rent Account
53
Account to be
credited
Cash Account
6. For each of the items (i) – (x), compute the missing amounts and write them in the space provided.
(a) Assets
i.
ii.
iii.
iv.
v.
(b)
16,000
………….
27,300
………….
20,500
Sales
(i)
(ii)
(iii)
(iv)
(v)
…………
92,000
130,000
…………
95,000
Liabilities
……………..
8,850
6,500
13,400
……………..
Capital
8,500
24,000
………….
38,400
17,300
Cost of sales
26,000
…………
115,000
156,000
……………
Gross profit
14,000
48,000
…………
24,000
45,000
SECTION C: (45 MARKS)
Answer all question from this section.
7. Kasisi’s family is in business and manages a real estate company. The following information concerns
the company’s transactions during the month of January 2020.
I January
Balances at the start of the month: cash in hand Tshs. 1,000; bank Tshs. 3,000
2 January
Cash sales Tshs. 2,000; banked cash Tshs. 1,500
3 January
Cash purchases Tshs. 500
4 January
Withdraw cash from bank for office use Tshs. 1,000
6 January
Paid rent by cash Tshs. 100
7 January
Paid wages cash Tshs. 200
10 January Received by cheques from customers, less 10% cash discount: Khalid Tshs. 300;
Othman Tshs. 200.
12 January Made payments to suppliers by cheque, less 4% cash discounts: Nadia Tshs.200;
Juma Tshs. 250.
17 January Bought stationery by cheque Tshs. 400.
20 January Paid taxes by cheque Tshs. 800
21 January Cash sales Tshs. 1,200
31 January Banked Tshs. 1,000 cash.
From the above information, prepare three column cash book, balance it at the end of the month and the
relevant discount accounts in the general ledger shown.
54
8. From the following Trial balance of Kasanura Group, prepare an Income statement for the year ended
31st March, 2021 and a Statement of financial position as on date.
TRIAL BALANCE AS AT 31ST MAY, 2021
Name of Account
Capital
Stock
Purchases and Sales
Insurance
Sundry Debtors and Creditors
Rent
Wages and Salaries
Lorry
Furniture
General expenses
Returns outwards
Cash at Bank
TOTAL
Debit
25,000
55,000
2,500
12,000
12,000
18,000
15,000
10,000
10,500
Credit
70,000
80,000
26,100
4,500
20,600
180,600
180,600
Note: Closing stock was Tshs. 20,000.
9. Write up journal entries and ledger accounts needed to record the corrections of the following errors.
i)
Purchases of goods worth Tshs. 2,000 on credit from Sharifa has not recorded at all in any books
of account.
ii)
A purchase of goods worth of Tshs 5,000 from Lay has been posted to the credit side of Ray’s
account.
iii)
Office equipment purchased for Tshs 1,000 in cash has been debited to an office expenses
account.
iv)
A purchase of goods on credit from Eva of Tshs. 10,000 is entered in the books as 1,000.
v)
Payment of wages of Tshs. 40,000 was recorded in the books as Tshs. 35,000, and receipts from
sales of Tshs. 65,000 was recorded in sales account as 60,000.
55
Series No. 12
SECTION A (15 MARKS)
ANSWER ALL QUESTIONS IN THIS SECTION
1. For each of the following items (i) to (x), chose the most correct answer and write its letter beside the
item number in the answer sheets provided.
(i)
Among the books of prime entries are?
(a) Sales ledger, purchases journal and cash book
(b) The journal, cash book, and return inward journal
(c) Purchase journal, cash book and return inward journal
(d) Sales ledger, purchases ledger and general ledger
(e) Cash book, bank account and capital account
(ii)
If an entity obtains a loan of TZS. 150,000 from a bank to purchase a motor vehicle for the
business the effect of financial transaction on the accounting equation will be.
(a) Increase in liability and increase in equity.
(b) Increase in equity and increase in assets
(c) Increase in liability and decrease in equity
(d) Increase in liability and increase in assets.
(e) Decrease in liability and decrease in assets.
(iii)
Which among the following is the correct record for the goods taken from business for personal
use?
(a) Debit capital A/C and credit drawing A/C
(b) Debit drawing A/C and Credit Purchase A/C
(c) Debit drawings A/C and Credit cash A/C
(d) Debit drawings A/C and Credit owner’s personal A/C
(e) Debit pili A/C and Credit Purchases A/C
(iv)
Which of the following is nominal account?
(a) Bank account
(b) Debtors account
(c) Furniture account
(d) Motor running expenses
(e) Bank overdraft
56
(v)
What would you consider to be the main source of government funds?
(a) Royalties
(b) Fees
(c) Taxes
(d) Penalties
(e) Interest
(vi)
A cheque which is not accepted for payment by the bank due to insufficient fund in the drawer’s
bank account is known as?
(a) Dishonored cheque
(b) Uncredited cheque
(c) Unpresented cheque
(d) Unrecorded cheque
(e) Open cheque
(vii)
The descending order in which current assets should be shown in the balance sheet is
(a) Debtors, stock, cash , bank
(b) Debtors, stock, bank, cash
(c) Cash, bank, debtors, stock
(d) Stock, debtors, bank, cash
(e) Cash, debtors, bank, stock
(viii)
Credit sales are first entered in?
(a) Sales journal
(b) Purchase journal
(c) Sales account
(d) Sales ledger
(e) Sales returns journal
(ix)
Which of the following is the liability
(a) We owe for goods
(b) Depreciation
(c) Premises
(d) Loan to hamisi
(e) Cash at bank
57
(x)
Determine the amount of capital from the following:
Assets: Premises shs 40,000, Loan to Maembe shs 25,000, Stock shs. 28,000
Liabilities: Creditors shs 15,000, Loan from Kapufi shs. 20,000.
(a) Shs 93,000
(b) Shs 35,000
(c) Shs 128,000
(d) Shs 58,000
(e) Shs 65,000
2. Match the items in list A with the response in List B by writing the letter of the correct response beside
the item number.
LIST A
i. Are ledgers contain supplies personal account?
ii. Are ledgers contain customer’s personal account.
iii. Are ledger contains real and nominal account.
iv.
Are ledgers contain the capital and drawing
accounts
v. Are ledgers contain cash account and bank
account.
LIST B
A. General ledger
B. Private ledger
C. Sales ledger
D. Cash book
E. Purchase ledger
F. Personal ledger
G. Impersonal ledger
SECTION B (40 MARKS)
ANSWER ALL QUESTIONS IN THIS SECTION
3. (a) Financial statement are very important to a business to overall profitability of a business. Identify five
(5) users of financial statements
(b) Below is the table showing different accounts whether is real, personal or nominal account
s/n
(i)
(ii)
(iii)
(iv)
(v)
Name of account
Motor vehicle
Discount received
Judith ally
Fixtures and fittings
Sales
Classification of account
4. (a) Analyze five reasons for goods to be returned to the supplier
(b) Mention five (5) internal source of government revenue
5. Define the following terms
(a) Book-keeping
(b) Nugatory expenditure
(c) Credit note
(d) Closing stock
58
(e) Cash transaction
6. (a) Mention five (5) reasons for studying bookkeeping.
(b) Five (5) examples of transaction
SECTION C (45 MARKS)
ANSWER ALL THE QUESTIONS IN THIS SECTION
7. Vumilia Samson keeps her petty on the imprest being Tshs 25,000. For the month of April 2018, her
petty cash transactions were as follows.
2018
Tshs
April 01 Petty cash balance
1,130
April 02 Petty cashier presented vouchers to cashier
And obtained a cash to reserve the imprest
April 04 Bought postage stamps
8500
April 09 Paid to Samwel Isaac a creditor
2,350
April 11 Paid bus fares
1,720
April 17 Bought envelops
700
April 23 Received cash for personal telephone call
680
April 26 Bought petrol
10,000
Required
Enter the above transaction in the petty cash book of Vumilia Samson on 30 th April, with analysis
columns’ under the headings: postage, stationary travelling expenses
8. The trial balance was extracted from the books of Glory as at 31.12.2019
Details
Capital
Drawings
Purchases
Sales
Cash at bank
Returns inward
Returns outward
Furniture
Motor vehicles
Salaries
Carriage inward
Rent
Insurance
Stock 01st
Carriage outward
Advertising
Dr
Cr
15,000
2,410
44,280
69,470
2,780
1,200
980
2,000
5,000
14,880
1,920
370
870
6,290
380
1,210
59
Cash in hand
Discount allowed
Discount received
Debtors and creditors
NB: stock at 31st December 2019 was 7,360
120
310
6,000
550
4,000
Required:
Prepare income statement for the year ended 31st December 2019.
9. (a) The cash book of Mkude showed a credit balance of Tzs 4,470 on 31st December 2015 while the bank
statement showed an overdraft of Tzs 6,000. After a thorough investigation the following were
discovered:
Cash in hand
200,000
Cash at bank
800,000
Furniture
500,000
Premises
200,000
Debtors
Mwaisa
50,000
Mtumbadi
30,000
Creditors Mnyabi
Madenge
30,000
100,000
Required:
Enter the following ledger in the Journal proper
(b) Te cash book of Ezra showed a credit balance of 4,470 On 31st December 2021, and the bank statement
showed an overdraft of 6,000, after a thorough investigation, the following were discovered
i.
Cheque issued but not presented up to 31st December 2015, TZS 7,500
ii.
Cheque deposited but not credited up to 31st December 2015, TZS 9,000
iii.
Bank charges TZS 30 was entered only in the bank statement
Required:
Prepare the bank reconciliation statement starting with an overdraft as per bank statement.
60
Series No. 13
SECTION A (15 Marks)
1. For each of items (i) − (xv) Choose the correct answer from among the given alternative and write its
letter in the box space provided.
i)
An art of recording financial business transactions in a set of books and in term of money or money’s
worth is known as
A. Closing entries
B. A list of assets and liabilities
C. Book keeping
D. Journalizing.
ii)
Which of the following statement is not correct?
A. Assets – Capital = Liabilities
B. Liabilities + Assets = Capital
C. Assets – liability = Capital
D. Liabilities + capital = Assets
iii)
The books where the initial entry of transaction is entered before posting the entry to the relevant
ledger accounts
A. Books of accounts B. Books of borrower
C. Books of original entry D. None of above
iv)
v)
vi)
vii)
viii)
Which of the following documents does a book-keeping need to record purchases of goods in the
purchases day book?
A. The purchaser’s order
B. The delivery note
C. The credit note
D. The supplier’s invoice
In triple column cash book, cash withdrawn from bank for office use will appear in
A. Debit side of the cash book only
B. Both sides of cash book.
C. Credit side of the cash book only D. Discount column
How much is to be reimbursed if a petty cashier has spent Tsh.189,00/=while his cash float is
Tsh.200,000/=
A. Tsh 11,000/=
B. Tsh 389,000/=
C. Tsh 189,000/= D. Tsh 200,000/=
A bank reconciliation statement can be defined as the statement:
A. Sent by bank when the account are overdrawn
B. Drawn to verify cash book balance with the bank statement balance
C. Drawn up by the bank to verify the cash book
D. Sent by the bank to the customers when errors are made
If two totals of trial balance do not agree, the difference must be entered in:
A. real account
B. The trading accounts
C. The capital account
D. A suspense account
61
ix)
x)
The accounting concept which emphasizes that assets of a business must be recorded at the original
price is called
A. Matching concept
B. Consistency concept
C. Dual aspect concept
D. Historical cost concept
A statement showing a list of debit and credit balance of account is
A. Balance sheet B. Trading Account C. profit and loss account D. Trial balance
ANSWER
X
I
II
II
IV
V
VI
VII
VIII IX
2. For each of the items (i)-( v) match the narrations of bank reconciliation Items in column A with their
corresponding names in column B by writing the letter of the correct response beside the item number
in the answer sheet provided
COLUMN A
COLUMN B
vi.
These are payments made by a firm or person
A. Standing order
through cheque but they are not yet sent by
B. Dishonored cheques
customers to the bank to effect those payments.
C. Unpresentedcheques
vii.
These are payments received by a firm or person by
D. Errors
cheque but they are not yet passed through the
E. Unaccredited cheques
banking system.
F. Dividents
viii. These are fees deducted by the bank for different
G. Direct transfers
services made on the current account.
H. Bank charges
ix. These are payments made by the customer firm
direct to the bank account of supplier firm.
x. These are payments directed by the account holder to
be made by the bank on his behalf.
ANSWER;
COLUMN A
COLUMN B
I
II
III
IV
V
VI
VII
SECTION B. (40 Marks)
3. Define the following book keeping terms
i)
Contra entry
ii)
Trial balance.
iii)
Subsidiary books
iv)
Credit transactions
v)
Ledger
62
VIII
IX
X
4. Mention five sources of government revenue (funds).
5. From the following table you are required to complete the empty gaps with the correct figures:
LIABILITIES
Tshs. 65,500
Tshs…………..
Tshs. 75,510
Tshs. 70,000
Tshs…………..
ASSETS
Tshs…………….
Tshs. 275,000
Tshs……………..
Tshs. 160,000
Tshs. 250,000
CAPITAL
Tshs. 105,000
Tshs. 125,000
Tshs. 350,450
Tshs…………
Tshs. 195,000
6. Anneth owns a Jewelry Retail shop in Dar-es-Salaam. She does not bother to record and keep
accurate financial information of her daily business transactions. In five (05) points, advise her on the
need for book-keeping in businesses.
(vi)
____________________________________________________________________
(vii)
____________________________________________________________________
(viii)
____________________________________________________________________
(ix)
____________________________________________________________________
(x)
____________________________________________________________________
SECTION C (45 Marks)
7. MR CHEKELEA is a sole trader who enters all his cash and bank transactions in a three column cash
book. His transactions for the month of October 2019 are as follows:
October 1st: Balances brought forward:
Cash in hand sh. 2200;
Cash at bank shs. 6 2,700/=
Debtors
Adam
Tshs. 4500
Kamau
Tshs. 5600
Creditors
Happy
Tshs. 7500
Dorice
Tshs.7000
October 4th: Paid to Happy by cheque Tshs. 7100 being in full settlement of debts of Tshs. 7500 less sh.5%
discount.
October 6th: Received from Adam a cheque for Tshs.4200 being in full settlement of his debts of Tshs. 4500
.
October 11th: Received from Kamau Tshs. 5100 in cash being in full settlement of his debts.
October 16th: Paid into the bank the sum of Tshs. 9000 including the cheque for Tshs. 4200 received from
Adam on 6th October.
October 23rd: Paid to Dorice by cheque Tshs. 6300 being in full settlement a debt of Tshs. 7000
October 25th: drew cheque for Tshs.3000 for office use.
October 30th: paid wages in cash Tshs. 2700.
Required:
(i) Draw up the three column cash book for the month of October, 2019
(ii) Show discounts account in general ledger.
63
8. The following cash book of Kufakunoga shop (bank column) as at 31st March, 2018.
DR.
CASH BOOK
CR.
DATE
DETAILS
AMOUNT DATE
DETAILS
AMOUNT
1.3.2018 Balance b/d
12,850
3.3.2018 Insurance
15,000
2.3.2018 Cheque
13,150
6.3.2018 Cheque
9,450
3.3.2018 Robin
12,750
8.3.2018 Jayreen
16,750
3.3.2018 Cheque –Prosper
11,960
31.3.2018 Balance c/d
9,510
50,710
50,710
1.4.2018 Balance b/d
9,510
However the bank statement of Kufakunoga shop at that date showed a balance of Tshs. 14,640/=. Bank
charges Tshs. 1000/=, standing order sh. 3,000/= and credit transfer TShs. 4,340/=
You are given the following information by an accountant showing unpresented cheque of Tshs. 16,750/=,
uncredited cheque –Baba Robin Tshs.11, 960/=
Required:
(i) Show the adjusted cash book
(ii) Prepare a bank reconciliation statement as at 31st MARCH, 2018
9. The following trial balance was extracted from the books of Noreen Jewelry Store, on 30th June 2017.
Details
Capital
Stock as at 1.7.2016
Cash at bank
Purchases and sales
Sundry debtors and creditors
Insurance
Drawings
Sales returns and Purchases returns
Salaries and wages
Motor van
Electricity bills
Bad debts
General expenses
Discounts allowed and received
Rent and rates
DR
164,800
156,800
1,656,000
290,000
20,400
184,000
4,800
324,800
250,000
30,000
19,200
44,800
42,000
9,600
3,187,200
CR
776,000
2,205,600
154,400
4,000
47,200
3,187,200
Stock at 30th June 2017 was valued at TZS 201,600
Required:
Using the information above, prepare Income statement for year ended 30th June 2017.
64
Series No. 14
1. Choose the correct answer among the given alternatives from item (i) – (x) and write its letter
in the box provided below
i.
One of the items below is not a transaction.
A. Mr. Smith started a business with cash of 100,000
B. Received a price list from suppliers
C. Received interest from the bank amounting to 5,000
D. Paid salaries of 300
ii.
A customer returns goods to a supplier. How does the supplier record this in his ledger?
iii.
Accounts to be debited
Accounts to be credited
A
Customer
Purchase returns
B
Customer
Sales returns
C
Purchase returns
Customer
D
Sales returns
Customer
Which report gives a review on the profitability of a business?
A. Statement of changes in equity
B. Cash flow statement
C. Statement of financial position
D. Income statement
iv.
Which of the following account with normal balance is shown at the debit side of a trial
balance?
A. Creditors account
B. Unearned income account
C. Rent income account
D. Cash account
v.
When goods are sold on credit to customers, which document should be issued
A. Cash receipt
B. Bank pay-in slip
C. Cheque
D. An invoice
vi.
Owner of the business added 25,000 in the business from his private fund, what is this amount
added in business?
A. Drawings
B. Cash amount
65
C. Capital
D. Addition
vii.
Which of the following is a nominal account?
A. Pascal and rent
B. Commission and buildings
C. Van and wages
D. Insurance and advertising expenses
viii.
Kijo sold goods to Mariam, Mariam was given allowance for the amount to pay. On side of
Kijo, which discount is it?
A. Trade discount
B. Discount received
C. Discount allowed
D. Trade and cash discounts
ix.
Kind of cash book which records small expenditures of the business transactions
A. Single column cash book
B. Two column cash book
C. Double column cash book
D. Petty cash book
x.
Opening stock plus goods bought plus carriage inwards minus purchases return less goods
unsold at the end of the period.
A. Cost of goods available for sale
B. Cost of goods sold
C. Net purchases
D. Gross profit
i
ii
iii
iv
v
vi
vii
viii
ix
x
2. Match the items in column A with corresponding items in column B, write the letter in the boxes
provided
COLUMN A
i. Withdrew cash from bank for business
purposes.
ii. Mistakes that committed in recording
business transactions.
iii. Sold goods to Kishada TZS 2,000, but
not recorded in the books.
iv.
Bought goods from Allawi.
v. Allowance given to customers when
goods are sold in bulk.
66
COLUMN B
A. Error of omission
B. Current liabilities
C. Trade discount
D. Errors
E. Contra entry transaction
F. General journal
G. Credit transaction
i
ii
iii
iv
v
SECTION B: 40 MARKS
3.
From the following mention the source document used to prepare the books of prime entry and
their uses.
Type of book of prime entry
Source document
Uses
i. cash book
ii. sales journal
iii. return outward day book
iv. sales return journal
v. purchases day book
4. briefly explain the following terms as used in book keeping
a. Trial balance
b. Imprest system
c. Bank charges
d. An invoice
e. Cash discount
5. From the following transactions, indicate the account to be debited and credited. (i) is done for you
as an example
Transactions
Account to be debited
Account to be credited
i.
Paid rent for cash
Rent account
Cash account
ii.
Cash purchases
iii.
Commission received by cash
iv.
Sold goods to Hassan
v.
Bought computer by cheque
vi.
Paid Chudo by cheque
6. Briefly explain five importance of maintaining petty cash book
67
SECTION C: 45 MARKS
Answer all questions in this section
7. From the following Trial balance, prepare income statement for the year ending 31st December
2019.
Details
DR
CR
Sundry debtors
145,000
Insurance
6,000
Purchases return
5,000
Salaries and wages
254,800
Machinery
200,000
Sales
988,800
Land
100,000
Inventory on 1st January 2019
58,600
Fuel and power expenses
47,300
Commission received
3,200
Carriage on purchases
20,400
Carriage on sales
32,000
Buildings
300,000
Capital
710,000
Sundry creditors
63,000
General expenses
30,000
Furniture
75,000
Return inwards
6,800
Cash at bank
29,500
Cash in hand
5,400
Drawings
52,450
Purchases
406,750
Total
1,770,000
1,770,000
Stock at 31 December 2019 was valued 62,000.
8. Mama J commenced business on 1st may 2014 with capital in cash TZS 120,000 and M-pesa TZS
250,000 , she decided to record her business transactions in a two column cash book but she has not
bank account. During the month, the following transactions were made
May 2: bought goods valued TZS 50,000 by M-pesa
May 4: goods valued TZS 45,000 were sold for cash
May 7: withdrew cash from M-pesa account for office use TZS 16,000
May 13: Mama J withdrawn TZS 5,000 from M-pesa for her own uses.
May 17: cash sales through M-ppesa TZS 32,000
MAY 20: bought goods TZS 42,000 on credit from Chiza
May 23: received commission through M-pesa TZS 8,000.
May 24: paid rent by cash TZS 5,200
May 28: paid waterbill of TZS 2,000.
Required: prepare two column cash book and balance it at the end of the month.
68
9. Chimwaga had the following properties and claims for the business on the month of July 2021.
Business buildings
350,000
Account payable for the business
84,000
Furniture
100,000
Debtors for goods
30,000
Available balance in the bank
90,000
Cash balance
20,000
Motorcycle
150,000
Chimwaga’s loan from Finca for business
220,000
Computer for his office
180,000
Small van for business
400,000
Required: prepare journal proper and ascertain the amount of capital his business.
69
Series No. 15
SECTION A (15 MARKS)
MULTIPLE CHOICES (10 MARKS)
1.
For each of the following items write the letter of the correct answer in the box provided.
(i)
If the current assets amount TSH 67000 and fixed assets amount to TSH 100000 and total
liabilities amount to TSH 35000.How much is total capital?
A. TSH 32000
B. TSH 33000
C. TSH 132000
D. TSH65000
(ii)
Withdrawing money in excess of what stands on the account.
A. Bank charges
B. Overdraft
C. Standing order
D. Cash overcharge
(iii) A Trial Balance is prepared in the business in order to:
A. calculate profit or loss
B. check bank balance
C. check the accuracy of ledger entries
D. provide a list of assets and liabilities.
(iii) A system where a petty cashier is refunded with the amount of money in order to restore to
original
position.
A. Imprest system
B. Cash system
C. Cash float system
D. Double entry
(iv) Includes things possessed by the business.
A. Assets
B. Capital
C. Liabilities
D. Purchases
(v)
Purchases +Carriage inwards-returns inwards = ……………………..
1. Net purchases
2. Net sales
3. Cost of goods sold
4. None of the above
70
(vi)
States that the business is separate distinct from the owner of the business.
A. going concern concept
B. Money measurement concept
C. Business entity concept
D. Life separation concept
(vii) Records the reference page in the books of account
A. Folio column
B. Date column
C. Debit side
D. Particulars
(viii) With drew cash from the bank for personal use. It is an example of……………
A. Contra entry
B. Drawing
C. Cash overage
D. Capital
(ix)
Where discount is received shown?
A. Debit side of debtor account.
B. Debit side of the creditor account.
C. Credit side of the purchases account
D. Debit column in sales account
(x) It is both book of prime entry and part of the ledger:A. Purchases journal
B. Sales journal
C. Journal
D. Cash book
(xi)
Goods taken by the owner of the business for person use are..................................................
A. Debited in the purchases account
B. Credited in the drawing account
C. Credited in the purchases account
D. Debited in the cash account
2. Choose the correct term from GROUP B which matches with explanation in GROUP A and then write
its letter against the number of the relevant explanation in the space provided.
GROUP A
(i) A share of profit from a stock company.
(ii) Are shown in the credit side of the cash book but are not seen in the debit side of the bank
statement.
(iii) Occurs when debtors pay their bills through the bank without informing the business.
(iv) Are the items for bank reconciliation which appear in both cash book and bank statement
(v) They provide services like keeping money, providing loan, credit transfer, etc
71
GROUP B
A. Errors
B. Dividend
C. Uncredited cheque
D. Unpresented cheque
E. Direct deposit
F. Bank Charges
G. Bank
Answers
GROUP A
GROUP B
(i)
(ii)
(iii)
(iv)
(v)
(05marks)
SECTION B (40 MARKS)
3.
4.
a) In brief explain the following accounting concepts:i Business entity concept
ii Going concept concept
iii Money measurement
b) Explain any two advantages of Bank Reconciliation.
(04marks)
Complete the following table.
Transaction
Document
issued
Sold goods on credit
i to Latifa
……………
…....
Goods returned by
us to supplier.
Book of
original entry
Ledger
Name o of the
accounts involved
………………
………
………………
……..
…………
………
…………
……..
…………………
……
…………………
…..
………………
………
………………
………
…………
………
…………
………
…………………
……
…………………
……
(10 arks)
5. State the nature of the following accounts whether they are debit or credit balance.
Accounts
Nature of the Account
(Debit or Credit)
(i)
Capital account
(ii)
Purchases account
(iii) Sales account
(iv)
Rent received account
(v)
Rent account
(vi)
Drawings account
(vii) Machinery account
(viii) Debtors account
(ix)
Creditors account
(x)
Stock account
ii
……………
…....
(06 marks)
72
(10marks)
6. Identify the accounts affected by the following transaction and show action to take in recording the
accounts in the double entry system.
Transaction
Account to be Account to be
credited
debited
(i)
Owner put cash into business.
(ii)
Bought goods for cash.
(iii)
Sold goods for cash.
(iv)
Received cash for rent.
(v)
(10marks)
Owner withdraws cash from business
for personal use.
SECTION C (45 MARKS)
7. The cash book of Pugo Co ltd on 31st December 2014 showed a debit balance of Tsh 22500 where as
the bank statement showed a credit balance of Tsh 22100,in comparing the two the following were
discovered ;
i)
Cheques drawn and paid to the creditors but presented for payment Tsh 4350 on 3rd January
2015.
ii)
Cheque received from debtor and paid to the bank but not recorded by the bank until a later date
amounted to Tsh 4720.
iii)
Bank charged amounted toTsh 780.
iv)
Standing order to ZamuliTsh 800.
v)
The bank collected Tsh 650 for interest received.
vi)
Direct deposits amounted to Tsh 900
Required:
Prepare
a) Adjusted cash book
b) Bank reconciliation statement starting with the balance as per adjusted cash book
(15marks)
73
8. T. Thomas, a sole trader keeps his petty cash on the imprest system. The imprest amount is TZS
50,000. The petty cash transactions for the month of February 2017 were as follows
2017
February 1, petty cash in hand TZS 4,670
February 1, petty cash restored to imprest amount
February 3, paid wages TZS 8,760
February 7, purchased postage stamps TZS 2,940
February 10, paid wages TZS 9,110
February 14, purchased envelops TZS 2,280
February 17, paid wages TZS 8,840
February 20, paid cash to J. Mureithi a creditor, TZS 4,160
February 21, purchased stationery TZS 2,750
February 24, paid wages TZS 8,480
Record the given transactions in T. Thomas’s petty cash book for the month of February 2017 and
show the restoration of the petty cash to the imprest amount as on 1st March 2017. Use the following
analysis columns.
(a) Wages
(b) Stationery
(c) Postage
(d) Ledger
(15marks)
9. You have extracted a trial balance and draw up accounts for the year ended 31st December 2016. There
was a shortage of Tshs 292 on the credit side of the trail balance, a suspense account being opened for
that amount.
During 2017 the following errors made were located.
a) Tsh55 received from sales of office equipment has been entered in the sales account.
b)
Purchases day book had been over cost by Tshs 60
c)
A private purchase of Tshs 115 had been included in the business purchases.
d)
Bank charges Tshs 38 entered in the cash book has not been posted to the bank charges account.
e) A sale of goods to B. cross Tshs 690 was correctly entered in the sales book but entered in the
personal account as Tshs 960.
Required;-
Show the requisite journal entries to correct the errors
-
Write the suspense account showing the correction of the errors
74
Series No. 16
SECTION A (15- MARKS)
For each of the following Items w rite the letter of the correct answers
i. Suppose you are a businessman, and you took goods for your family uses, this process is known
as….
A. Balance B. Drawings C. Loss D. Profit
ii. Form two students were asked by book keeping teacher to outline all sources of documents,
which one of them is concerning with buying and selling of goods and services on credit?.
A. Credit note B. Debit note C. Invoice D. Pro forma invoice
iii. Assume that you have constructed a ledger, which column is concerning with page references
of the ledger?
A.
Details B. Folio C. Ledger account D. Particular
iv. If you have given the following items: Premises Tsh. 200,000/= Debtors Tsh
170,000/= stock Tsh. 350,000/= Creditors Tsh 50,000/=
Loan from Ally Tsh 220,000/=What will be the amount of Capital?
A. Tsh. 450,000/= B. Tsh. 480,000/= C. Tsh. 505,000/= D. Tsh. 540,000/=
v.
One of the objectives of book keeping is to.
A. Allow fair tax assessment B. Avoid payment of tax C. Get employment D. Know how to
steal money
vi. Which of the following is correct?
A. Capital can only come from profit B. Profit does not change capital
C. Profit increases capital
D. Profit reduces capital
vii. An officer who controls public money is known as
A. Authorized Officer B. Accounting officer C. Paymaster General
D.Receiver of Revenue
viii. Capital and drawing account are classified as
A. Nominal Accounts B. Personal Accounts C. Properties Account
D. Real, Account
ix. If Kajogoo bought goods valued Tsh 70,000 /= on credit from Mwanvuaa .Therefore Mwanvua is a
A. Customer B. Creditor C. Debtors D. Purchases
x. When we prepare an Income Statement, the returns inwards should be
A. added to cost of goods sold B. added to sale C. deducted from purchases
D. deducted from sales
(xi) The cost of borrowing money is called
(xii)
A.Duty B. Reward
C. Profit D. Interest
The two types of discounts are
A.Discount allowed and Discount received
B. Debtor’s discount and creditor’s discount
C.Cash Discount and trade Discount
D.Cash Discount and Bank Discount
75
(xiii) Given a cash float is Tshs. 300,000/= if Tshs. 267,000/= has been spent in the period, how
much will be reimbursed at the end of that period?
A.Tshs. 267,000/= B.T.shs. 300,000/= C.Tshs. 33,000/=
D.Tshs.567,000/=
(xiv)
(xv)
A Book of prime entry used to record goods sold on credit is called.
A.Credit sales B.Sales Day Book C.Sales returns Day Book
D. Sales Ledger
Business transactions is classified into: A.Four categories B. Three categories C.Two categories
D.None of the Above.
2. Choose the correct term from group B which matches with the explanation in group A and write the
latter below the number of corresponding pending explanation in the box provided.
GROUP A
GROUP B
I. Child
(i)
Starts from 1st July ends to 30th
J. Financial statements
June.
K. Reimbursement
(ii)
Statements prepared at the end of
L. Civil contingence Fund
the trading period.
M. Double Entry Book-keeping
(iii) The fund established for service
principle
which could not have been fore
N. Financial Year
seen event
O. Credit transactions
(iv)
A topped up amount to a petty
P. Cash transactions
cashier
Q. Special Fund
(v)
Substantially depending on the
officer for his/her livelihood
SECTION B (40- MARKS)
Short answer questions:
3. Give the meaning of the following terms:
(vi)
Double entry system
(vii) Money measurement concept
(viii) Non-current asset
(ix)
Consolidated fund
(x)
Accounting
4. (a) In order the Government of Tanzania to run her daily routine its need income, In five points
give a source of Government Income:
(b) Why Goods may be returned? (Give five points)
76
5. From the following table you are required to complete the empty gaps with the correct figures:
LIABILITIES
(a) Tshs. 65,500
ASSETS
Tshs…………….
CAPITAL
Tshs. 105,000
(b) Tshs…………..
Tshs. 275,000
Tshs. 125,000
(c) Tshs. 75,510
Tshs……………..
Tshs. 350,450
(d) Tshs. 70,000
Tshs. 160,000
Tshs…………
(e) Tshs…………..
Tshs. 250,000
Tshs. 195,000
6. Mnyonge co-operative shop made the following Purchases during the month of January 2019.
Jan.1
Bought from RTC Kilimanjaro
100 bags of Rice@5,000
50 bags of Sugar@7,000
Jan.5
Bought from Mangi Ltd
10 boxes of cooking oil fat @3,000
12 pairs of Sandal @ 2,000
Jan.10
Bought from Moshi Traders
20 pairs of bed sheet @7,000
50 shirts @3,000
REQUIRED: Prepare Bought Journal from the above Transactions
SECTION C (45 MARKS)
7. On 31stDecember, 2008 the bank column of Tengeneza’s cash book showed a debit balance of sh.
15,000. The monthly bank statement written up to 31stDecember, 2008 showed a credit balance of
sh. 29,500.
On checking the cash book with the bank statement it was discovered that the following
transactions had not been entered in the cash book:
Dividends of sh. 2,400 had been paid directly to the bank.
A credit transfer ­ TRA and Customs VAT refund of sh. 2,600 had been collected by the
bank.
Bank charges sh. 300.
A direct debit of sh. 700 for the Charity subscription had been paid by the bank.
A standing order of sh. 2,000 for Tengeneza’s loan repayment had been paid by the bank.
Tengeneza’s deposit account balance of sh. 14,000 was transferred into his bank current
account.
A further check revealed the following items:
Two cheques drawn in favour of Tamale sh. 2,500 and Fadiga sh. 2,900 had been entered in
the cash book but had not been presented for payment.
Cash and cheques amounting to sh. 6,900 had been paid into the bank on 31stDecember,
2008 but were not credited by the bank until 2ndJanuary, 2009.
(i)
Bring the cash book (bank column) up to date, starting with the debit balance of sh.
15,000, and then balance the bank account.
77
(ii)
Prepare a bank reconciliation statement as at 31stDecember, 2008
8. From the following details below of Nyakabindi Region prepare Income statement for the year ended
31st December,2017.
Details
Amount
Sales
130,000
Return inwards
10,000
Purchases
72,000
Return outwards
1,500
Stock at start 01/01/2017
12,000
Stock at close 31/12/2017
7,500
Carriage on sales
3,000
Interest received
260
Discount allowed
4
800
Rent and rates
4960
Salaries
12,000
Bank charges
3,600
9. (a)Prepare a Trial balance for A. Naweza and Sons Ltd from the following list of balances as on 31st
January 2019
Tshs
15,300
48,000
75,000
250,000
62,000
4,100
8,400
12,700
156,100
6,600
Cash
Sales
Van
Capital
Purchases
H. James – A Debtor
Returns outwards
T. Chama – A Creditor
Office Equipment
Returns inwards
(b) Show journal entries necessary to correct the following errors:
i.
Sales day book had been undercast by 100,000/=
ii.
Purchases of goods on credit 33,000/= from Chacha was entered in error in Charles
account
iii.
Discount allowed account had been overcast by 80,000/=
Note: Narrations not required.
78
Series No. 17
SECTION A (15 Marks)
Answer all questions from this section
1. For each of the following questions, write the letter of the correct answer in the space provided.
i) The principle that call for every debit entry to have equal credit entry in the books:
A. Single entry system
B. Double entry system
C. Three entry system
D. Bookkeeping
ii)
A transaction where payment for goods is made at a later date
A. Credit transaction C. Trade transaction
B. Cash transaction
D. Gross transaction
iii)
Cash taken from business by the proprietor for personal use should be debited to……………
A. Drawing accounts
C. Bank account
iv)
B) Cash account
D. Goods account
Is where both the debit and credit entries are shown within the cash book
A. Contra entry
C. Contra system
B. Control entry
v)
D) Control system
vi)
The proper document used for depositing money in the bank is known as:
A) Payment voucher
C. Pay in slip
B) Invoice
D. Bank statement
Carriage inward is charged to the Trading account because:
vii)
A. It is not a balance sheet
B. C. It is not part of our motor expenses
C. Returns inwards also goes to the Trading account
D. It is basically part of the cost of buying goods
Which of the following is not a real account?
A. Machine expenses account
C. Machine account
B. Furniture and fittings account
D. Furniture account
viii) The total of discount allowed in Three Cash Book is transferred to the;
A. Credit side of discount account C. Debit side of discount account
B. Profit and loss account
D. Discount account
i x) If sh541 spent from petty cash in the period and the opening cash float was sh.700. How much will be
reimbursed at the end period?
A. Sh. 159
x)
B. Sh. 700
C. Sh. 541
D. Sh 1,400
When the monthly bank statement is sent out which of the following would not appear
A) A dishonored cheque
B. A direct debit
B) Bank charge
D. Unpresented cheque
79
ANSWERS
I
Ii
Iii
Iv
v
Vi
Vii
Viii
Ix
X
MATCHING ITEM
2. Choose the correct term from group A which matches with the explanation in Group B and write it against
the number of relevant explanation.
GROUP A
(i)
(ii)
(iii)
(iv)
(v)
GROUP B.
Refer to the stock available at the beginning of
the business.
The cost of goods purchased plus carriage
inward less return outward.
The amount of money at which a petty cashier
start with each period
Any legal activity undertaken for the purpose
of making profit
Transport cost for the goods to customer.
A.
B.
C.
D.
E.
F.
G.
H.
Closing inventory
Float
Business
Net purchases
Opening inventory
Working capital
Net profit
Carriage on sale
ANSWERS
GROUP A
i
ii
Iii
iv
V
GROUP B
SECTION B (40 Marks)
Answer all questions from this section
3. (a) Mention any five causes of the difference between cash book and bank statement balances
4.
Outline any five advantages of Trial balance
5. Mention five main sources of government funds
80
6. Complete the following table
S/N
BOOK OF ORIGINAL
ENTRY
General journal
SOURCE DOCUMENT
…………………………..
………………………
…………………….
Returns inwards journal
………………………
iii.
Purchases returns
……………………………
………………………
iv.
…………………….
Sales day book
………………………
v.
Credit purchases of fixed asset
…………………………
SECTION C (45 Marks)
………………………
i.
TRANSACTION
Example: Credit sales of fixed
asset
Credit purchase of goods meant
for resale
Invoice
ii.
Answer all questions from this section
7.
Enter the following transactions in a petty cash book, having analysis column for cleanliness, postage and
telegram; and general expenses.
2012
September 16 Balance of cash in hand
8,400
Cash received to restore imprest of sh.2000
?
18 Paid for courier charge
1,500
19 Donation to warrior’s day fund
2,000
20 Paid for office cleaning
4,000
27 Paid for postage
500
29 Paid for detergent, blushes, and gloves
1200
30. Balance petty cash book and
Reimbursement received
?
8. Chimpinda enterprises had a cash book showed a debit balance of Tsh. 786,000 at the bank account on
30th June , 2004 while the bank statement on 30th June ,2014 showed a credit balance of Tsh 1,378,000. In
comparing the cash book with the bank statement the following balances had been observed:
a) Uncredited cheque of Tsh. 152,000
b) Unpresented cheque of Tsh 568,000
c) Bank charges of Tsh.10,000 appeared on the bank statement but not in the cash book .
d) A standing order Tsh.10,000 payable on 28th June had been paid by the bank but no entry had been
made in the cash book.
e) Interest of Tsh. 196,000credited by the bank to Mangungo’s current account but no entry has been
made in the cash book
Using the information provided: Required
i)
Adjust the cash book to show the correct balance
ii)
Bank reconciliation statement
81
9. You are given the cash book of Mr.Tarimo for the month of July, 2003. Post the transactions from the cash
book to the respective account in ledger and balance off the accounts
Mr. TARIMO CASH BOOK
Date
Particular
Folio Amount Date
1/1/2010 Capital
100,000 1/1/2010
3/1/2010 Sales
80,000 5/1/2010
18/1/2010 Sales
42,000 10/1/2010
31/1/2010
220,000
1/2/2010 Balance
b/d
110,000
82
Particular
Purchases
Purchases
Furniture
Balance
Folio
c/d
Amount
35,000
50,000
25,000
110,000
220,000
Series No. 18
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 spaces provided.
(i)
Which of the following items appears on the debit column of the trial balance?
A Sales
B Opening stock
C Closing stock
D Commission received
(ii)
The value of closing inventories is found by
A Adding opening stock to purchases
B Doing stock taking
C Adding closing stock to sales
D Looking in the stock
(iii) Which one among the following is not an Asset?
A Building
B Cash balances
C Account receivable
D Loan from kapoko
(iv)
The document used to deposit money in the bank is known as;
A payment voucher
B Bank statement
C Cheque
D Bank pay in slip
(v)
The cash book for recording the day to day small business office expenses
A Single column cash book
B Double column cash book
C Petty cash book
D Three column cash book
(vi)
Double entry system means;
A Recording business transaction in the books of accounts
B Recording business transaction twice in the books of accounts
C Recording business transaction several times in the books of account
D Recording business transaction in the double entry system
(vii) ………….is one of the real account class
A Buildings
B Bank overdraft
C Mbeya City Club
D Sales
(viii) When goods or service are paid for at the time of exchange, it is a;
A Credit transaction
B Gross transaction
C Trade transaction
D Cash transaction
(ix)
An account where revenue collected by the government are deposited before allocating to
accounting officers is referred to as;
A Exchequer account
B Bank account
C Government account D Real account
(x)
Which of the following reduce capital in the business?
A Sales B Purchases C Net Profit D Net loss
ANSWERS:
i
Ii
Iii
iv
v
vi
Vii
83
viii
ix
x
2. Match the items in LIST A with the responses in LIST B by writing the letter of the correct response
in the spaces provided.
LIST A
LIST B
i. The concept which separates the business
affairs from business ownership
A. Accounting period
ii. The concept which assumes that business
concept
operations will continue for a long period of
B. Accrual concept
time without stopping
C. Business entity
iii. The concept under which non-current assets
concept
are recorded in the books of account at their
D. Historical cost concept
original acquisition cost
E. Dual aspect concept
iv.
The concept under which revenue is
F. Going concern
recognized when it is earned and expenses are
concept
recognized when they are incurred
G. Matching concept
v. The concept which relates expenses incurred
during the accounting period with the revenue
recognized during the same period
ANSWERS:
LIST A i
LIST B
ii
iii
iv
v
SECTION B: (40 Marks)
Answer all questions in this section
3. Explain the uses of each of the following books of prime entry;
i.
Purchases day book
ii.
Sales day book
iii.
Purchases return day book
iv.
Sales return day book
v.
General Journal
4. Define the following terms as used in Book-keeping
i.
Book-keeping
ii.
Bank overdraft
iii.
Trial balance
iv.
Bank statement
v.
Drawings
5. State any five reasons for dishonoring a cheque
6. Identify whether the following accounts are nominal, real or personal
S/N
Name of Account
i
Creditor
ii
Sales
iii
Stock
Iv
Purchases
V
Rent
Class of Account
84
Vi
Machinery
Vii
Cash
Viii
Advertising
Ix
Debtors
X
Land
SECTION C: (45 Marks)
Answer all questions in this section
7. Record the following transactions in a Petty cash book with analysis columns for Postage, Office
expenses, Wages and Ledger
March 1. Balance in hand of Petty Cashier was…………………………………. 28,800/=
1. Cheque received from chief cashier restoring the imprest to…………. 99,800/=
3. Postage stamps………………………………………………………… 12,900/=
5. Type writer ribbons purchased for ………………………………………6,700/=
6. Paid Fema a creditor……………………………………………………. 7,600/=
6. Cleaners wages paid …………………………………………………….9,700/=
8. Purchased stationary …………………………………………………….5,500/=
10. Bought stamps ………………………………………………………...19,700/=
11. Paid Ndabila a creditor …………………………………………………3,800/=
13. Paid Cleaners wages ………………………………………………….10,400/=
15. Purchased books ………………………………………………………10,000/=
18. Paid Nyagawa a creditor ……………………………………………….4,000/=
Required:
Balance the book on 19th march and show the amount that will be reimbursed to the cashier.
8. From the following information that was drawn from the books of Kiddo on 30th May 2016, prepare the
statement of financial position as at that date.
AMOUNTS
(Tshs)
180,000
1,140,000
180,000
312,000
656,000
848,000
100,000
50,000
286,000
160,000
DETAILS
Furniture and fittings
Capital
Stock
Debtors
Net profit
Land and buildings
Cash at bank
Cash in hand
Drawings
Creditors
85
9. While extracting a trial balance of Susu Company limited as at 31st December 2008, it was observed that
the total debit side exceeded the total credit side by 23,800/=.
Investigations through out the year revealed the following;
i)
Tshs. 2,200/- received from the debtor had been debited to his account.
ii)
A payment by Obby Tshs. 15,000/- had not been entered in his account.
iii)
Sales had been over casted by Tshs. 1,500/-
iv)
A cash purchase of Tshs. 232/- had been recorded in the purchases Account only but not yet
recorded in the cash Account.
v)
Returns outward Account had not been credited with an amount of Tshs. 6,132/-
Required;
prepare the Journal entries to correct the above errors as well as the Suspense Account.
86
Series No. 19
1. For each of the items (i) – (x) choose the correct answer from among the given(10marks)
alternatives.
i)
ii)
iii)
iv)
Which of the following describe best BUSINESS?
A)
An account providing the books balance to show to the financial position of the business.
B)
A record of closing entries
C)
is legal activity undertaken by person with aim of getting profit
D)
A statement of Assets
Which of these best describes profit?
A.
items bought to be used by the business
B.
items which will not wear out quickly
C.
is excess of income over expenses.
…….is the person who own a business
A)
It is not a balance sheet
B)
It is not part of our motor expenses
C)
proprietor.
D)
It is basically part of the cost buying goods.
is the statement which present the relationship between assets ,capital and liability.
A) capital
C)
v)
rent
C)
vii
book keeping
D) accounting equation
State that every transaction has two aspects
A) Dual aspect
vi)
B)
B) Deducted from asset
separate entity concept
D) Deducted from capital
Credit side is
A)
Left hand side
C)
Right hand side
B) transaction
D) b and c
buy bag for tsh 6000 is example of …
A)
drawings
B) sale
C)
transaction
D) Proprietor Account
87
viii) Is the tangible article which commodity deal
A)
ix)
x)
Fixed capital
B) Long term liability
C)
D) Goods
Current asset
Which of the following is main book of accounts?
A)
Ledger
C)
cash book
B) sale
D) Folio column
Purchase day book
A)
Record all cash
C) Credit side
B) Record all credit purchase
D) None of the above.
2. Match the items in Column A against with the responses in Column B and write the correct answer
underneath the item number in the table below.
Column A
Column B
(i) The business affairs to be quite separate from the owner’s affairs
A. Consistency concept
(ii) The business should record items stated in monetary terms
B. Time period concept
(iii)Transactions should be recorded in the accounting periods when they
C. Historical cost concept
actually happen, not when cash changes hand
D. Materiality concept
(iv) The business is set to operate for a foreseeable future
E. Money concept
(v) The business must ensure that there is close relationship between
F. Money measure concept
revenue and expenses used to generate that revenue
G. Dual concept
H. Going concern concept
I. Matching concept
J. Business entity concept
K. Accrual concept.
SECTION B (40 marks)
3. Mention fives types of books of prime entry(10marks)
4. mention fives objectives of Book keeping (10 marks)
5. why petty cash book is considered as important? Provide five points
6. Explain any five possible reasons which may cause the cash book balance and bank statement balance
disagree.
88
SECTION C (45 marks)
7. The following information were extracted from ABC traders as at 30th December 1998
ABC TRADERS
TRIAL BALANCE AS AT 31/12/1998
S/N NAME OF ACCOUNT
DR
CR
st
1
Stock at 1 january.1998
3,249
2
Purchases
11,380
3
Sales
18,462
4
Motor expenses
520
5
Salaries
150
6
Rent and rates
670
7
Insurance
111
8
General expenses
105
9
Premises
1500
10 Motor vehicle
1200
11 Debtors
1950
12 Creditors
1,538
13 Cash at bank
1,654
14 Cash in hands
2040
15 Drawings
895
16 Capital
5,424
25,424
25,424
Stock .31/12/1998 was valued at shs.2,548
REQUIRED: Prepare
i. Income statement for the year ended 31st December 1998.
ii. Statement of financial position as at 31st December 1998.
8. Obimbo is a sole trader who enters all his cash and bank transactions in a three column cash book. His
transactions for the month of October 2019 are as follows:
2019
October 1st: Balances brought forward: cash in hand sh. 220; cash at bank shs. 6,270/=
Debtor’s account
Adam
Tshs. 450
Kamau
Tshs. 560
Creditor’s account
Happy
Tshs. 750
Dorice
Tshs.700
October 4th: Paid to Happy by cheque Tshs. 710 being in full settlement of debts of Tshs. 750 less sh.40
discount.
October 6th: Received from Adam a cheque for Tshs.420 being in full settlement of his debts of Tshs. 450
less Shs.30 discount. This cheque was placed in Obimbo’s cash box.
October 11th: Received from Kamau Tshs. 510 in cash being in full settlement of his debts of Tshs.560 less
Tshs. 50 discounts
October 16th: Paid into the bank the sum of Tshs. 900 including the cheque for Tshs. 420 received from
Adam on 6th October.
October 23rd: Paid to Dorice by cheque Tshs. 630 being in full settlement a debt of Tshs. 700 less Tshs. 70
discounts.
October 25th: drew cheque for Tshs.300 for office cash
October 30th: paid wages in cash Tshs. 270.
Required:
Draw up the three column cash book for the month of October, 2019
Show discounts general ledger.
89
9. The following cash book of ELINA GENERAL SUPPLIER, (bank column) as at 31st MARCH, 2018.
DR.
DATE
CASH BOOK
DETAILS
CR.
AMOUNT DATE
DETAILS
AMOUNT
1.3.2018 Balance b/d
12,850
3.3.2018
Insurance
15,000
2.3.2018 Cheque
13,150
6.3.2018
Cheque
9,450
3.3.2018 Moon luck
12,750
8.3.2018
M.Kibicho
16,750
3.3.2018 Cheque –Masinde
11,960
31.3.2018 Balance c/d
50,710
1.4.2018 Balance b/d
9,510
50,710
9,510
However, the bank statement of Elina general supplier at that date showed a balance of Tshs. 14,640/=. Bank
charges Tshs. 1000/=, standing order sh. 3,000/= and credit transfer TShs. 4,340/=
You are given the following information by an accountant showing unpresented cheque of Tshs. 16,750/=,
uncredited cheque Tshs.11,960/=
Required:
(i) Show the adjusted cash book
(ii) Prepare a bank reconciliation statement as at 31st MARCH, 2018
90
Series No. 20
SECTION A: 15 MARKS
Answer all questions
1. For each of the following items, write the letter of the correct answer in the box provided.
(i) A company does not include the value of skills gained by its employees from training programs in its
financial statements. Which accounting concept is applied?
A. Dual aspect concept
B. Matching concept
C. Money measurement concept
D. Business entity concept
(ii) A business sold goods with a list price of TZS 5,000/= each.
The terms of trade were:
Trade discount for more than 20 items bought 10%
Cash discount if customer pays within 30 days 4%
How much was received in full settlement from a customer who bought 25 items and paid after 35 days?
A.
B.
C.
D.
TZS 90,000
TZS 107,500
TZS 112,500
TZS 120,000
(iii)If a business owner invests personal cash in the business, it will have the following effect:
A. Assets and liabilities increase.
B. Assets increase and liabilities decrease.
C. Assets and capital increase.
D. Assets decrease and capital increases.
(iv) The document sent by the supplier to check the overcharge on the original invoice is called
A. Debit note
B. An invoice
C. Bank statement
D. Credit note
91
(v) A trader provided the following information at the end of the first year of trading.
TZS
Sales
500,000
Net profit for the year
50,000
Expenses
140,000
Closing inventory
80,000
What were the purchases for the year?
A.
B.
C.
D.
TZS 230000
TZS 390000
TZS 490000
TZS 670000
(vi) On 1st August the bank column in Jekwas’s cash book showed a credit balance of shs TZS 200,000/=.
The following transactions took place in August.
Cash sales TZS 1,400,000/= were paid directly into the bank.
TZS 50,000/= was withdrawn from the bank for office use.
What was the balance on the bank column of Jekwa’s cash book on 1st September?
A.
B.
C.
D.
(vii)
A.
B.
C.
D.
(viii)
A.
TZS 1,150,000 credit
TZS 1,150,000 debit
TZS 1,550,000 credit
TZS 1,550,000 debit
A suspense account is opened whenever:
The trial balance totals agree.
The trial balance totals do not agree.
The statement of financial position totals agree.
The statement of profit or loss totals do not agree.
The expenditure for which the government has received no value is called:
Nugatory expenditure
B. Development expenditure
C. Statutory expenditure
D. Recurrent expenditure
(ix) A cheque paid by you, but not yet passed through the banking system, is
A. A standing order
B. A dishonoured cheque
C. A credit transfer
D. An unpresented cheque.
92
(x) A debit balance is a balance:
A. Carried down on the debit side and brought down on the credit side.
B. Carried down on the debit side and brought down on the debit side.
C. Carried down on the credit side and brought down on the debit side.
D. Carried down on the credit side and brought down on the credit side.
E. None of the above
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
2. Match the items in LIST A with the responses in LIST B by writing the letter of the correct response.
LIST A
LIST B
(i) He is an officer appointed by the president to be (A) Receiver of revenue
the watch dog of public money.
(B) Collector of revenue
(C) Warrant holder
(ii) He is an officer appointed by the ministry of
(D) Paymaster General
finance in writing to control the issue of public
(E) Accounting officer
money.
(F) Authorized officer
(iii)He is an officer appointed by the treasury in
(G) Controller and Auditor
writing and charged with the duties and
General
responsibilities to account for public funds to
meet expenditure on public services.
(iv) He is an officer appointed by the treasury in
writing to collect and account the public money.
(v) He is an officer who receives fund from the
Accounting officer to meet specific
expenditure.
LIST A
(i)
(ii)
(iii)
LIST B
93
(iv)
(v)
SECTION B: 40 MARKS
Answer all questions
3. Briefly explain five (5) importance of bank reconciliation
i.
...............................................................................................................................................
ii.
...............................................................................................................................................
iii.
...............................................................................................................................................
iv.
...............................................................................................................................................
v.
................................................................................................................................................
4. (a) In which book of original entry the following transactions are recorded?
i.
Purchase of furniture by cheque...........................................................
ii.
Purchase of goods on credit...................................................................
iii.
Sale of goods on credit..........................................................................
iv.
Sale of old furniture on credit...............................................................
v.
Goods returned by our customers.........................................................
(b) Classify the following accounts whether Personal, Nominal or Real account.
S/N
NAME OF ACCOUNT
i.
Wages and salaries
ii.
Discount allowed
iii.
Juma and Co. Ltd
iv.
Fixtures and fittings
v.
Insurance
CLASSIFICATION
5. Complete the following table showing which accounts to be debited and which are to be credited.
S/N
TRANSACTION
(i)
(iv)
Purchased equipment from ODDO on
credit
Returned to ODDO some of the
equipment bought from him
The proprietor, MAGU paid in a
cheque from his private funds.
Paid cash into bank
(v)
Rent received in cash
(ii)
(iii)
ACCOUNT TO BE
DEBITED
94
ACCOUNT TO
BE CREDITED
6. Determines the figures represented by A, B, C, D and E in the table below. Working must be shown clearly.
NON CURRENT
ASSETS
CURRENT
ASSETS
LONG TERM
LIABILITIES
OWNER’S
EQUITY
SHORT TERM
LIABILITIES
150,000
165,000
A
70,000
40,000
B
85,000
65,000
55,000
45,000
230,000
35,000
15,000
40,000
C
D
123,000
80,000
30,000
20,000
340,000
E
120,000
240,000
100,000
SECTION C: 45 MARKS
Answer all questions
7. On 1.1.2018 the cash book of KIMAMBO TRADERS Cash and Bank balances of TZS 3,500,000 and
TZS 20,000,000 respectively. The following transactions took place in the month.
Jan 6: Cash sales TZS 12,500,000
15: Receives a cheque of TZS 45,000,000 from a debtor after deducting a 10% discount.
31: Paid a creditor TZS 28,500,000 after deducting 5%discount
31: Banked all cash leaving a balance of TZS 100,000 in the cash till
REQUIRED: Prepare a three-column cash book.
8. A book keeper extracted a trial balance on 31st December 2020 which failed to agree by TZS 330,000/= a
shortage on credit side of the trial balance, a suspense account was opened for the difference.
In January 2021 the following errors made in 2020 were found.
i.
Sales day book had been under cast by TZS 100,000/=
ii.
Sales of TZS 250,000/= to J. MWAJABU had been debited in error to J. RAJABU account
iii.
Rent account had been under stated by TZS 70,000/=
iv.
Discount received account had been under cast by TZS 300,000/=
v.
The sales of the motor vehicle at book value had been credited in error to sales account TZS 360,000/=
REQUIRED:
a) Show the journal entries necessary to correct the errors
b) Show up the suspense account after the errors described have been corrected
95
9. The trial balance below belongs to MALIAN CO. LTD of Magomeni, for the year ended 31st December
2020
PARTICULARS
DEBIT(TZS)
CREDIT(TZS)
st
Inventory 1 January 2020
950,000
Purchases
1,150,000
Sales
2,850,000
Capital
4,480,000
Land and Building
1,900,000
Machinery
2,200,000
Carriage inward
120,000
Carriage outward
170,000
Returns
100,000
80,000
Motor van
1,600,000
Account Receivables
1,400,000
Account Payables
1,700,000
Wages and Salaries
300,000
Rent and Rates
150,000
Discount allowed
200,000
Discount received
350,000
Loan from CRDB
1,000,000
Drawings
320,000
10,260,000
10,260,000
Additional information:
Inventory 31st December 2020 was valued at TZS 200,000/=
REQUIRED:
a) Prepare income statement for the year ended 31st December 2020
b) Prepare statement of financial position as at 31st December 2020
96
Series No. 21
SECTION A (15)
Answer all questions in this section
1. For each of items (i)-(x), choose the correct answer and write its letter in the box provided.
i.
Whenever cost of goods sold is greater than sales the outcome present
A. Gross profit
B. Gross loss
C. Net profit
D. Net loss
ii.
Given a desired cash float of Tshs. 5,000. If Tshs 4,410 is reimbursed at the end of the period, how
much will be spent in the period?
A. Tshs 4410
B. Tshs 590
C. Tshs 5,000
D. Tshs 9410
iii. Which of the following is not shown in the trial balance?
A. Purchases
B. Drawing
C. Opening stock
D. Closing stock
iv.
Income account is also referred as
A. Real account
B. Expenses account
C. Person account
D. Revenue account
v.
In bakery business, which is current asset?
A. Motor vehicle
B. Oven
C. Shelving
D. Stock of flour
vi.
The opening balance at beginning of financial period
A. Balance brought down
B. Balance carried for
C. Balance carried down
D. Balance at close
vii.
Posting the transactions in book keeping means
A. Marking the first entry of double entry transaction
B. Entering items in cash book
C. Making the second entry of a double entry
D. Something other than the above
viii. The supplier person account are found in the
A. Norminal ledger
B. General ledger
C. Purchases ledger
D. Sales ledger
ix. The total of the discount allowed column in cash book is posted to
97
A. The debit of the discount allowed account
B. The credit of the discount allowed account
C. The debit of the discount received account
D. The credit of the discount received account
x. An alternative name of sales journal is
A. Sales invoice
B. Daily sales
C. Sales ledger
D. Sales day book
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.
COLUMN A
COLUMN B
i. Expenditure of capital nature.
A. Warrant of funds
ii. Expenditure which do not add value to
B. Development budget
the government.
C. Commitments
iii. The day to day running expenses of the
D. Recurrent revenue
government.
E. Development expenditure
iv. Income of the government from taxes,
F. Consolidated fund
licenses and duties.
G. Authorized officer
v. A letter issued by the accounting officer
H. Approved estimates
covering authority of specific expenditure.
I. Recurrent expenditure
J. Nugatory expenditure
SECTION B (40)
Answer all questions in this section
3. Write short notes on the following
A. Trade discount
B. Two column cash book
C. Real account
D. Business entity concept
E. Trial balance
4. Calculate the gross profit or gross loss of each of the following business
A.
B
C
D
E
Cost of goods sold (TSHS)
9,820
7,530
10,500
9,580
8,760
Sales (TSHS)
10,676
14,307
19,370
9,350
17,200
Gross profit* Gross loss
5. Mention any five (5) causes of the returns goods to suppliers
6. Outline five (5) reasons of the differences between cash book and bank statement balance.
98
SECTION (C)
Answer all questions in this section (45 marks)
7. Write up three column cash book for MR. Tindwa from the details given below, then balance the cash
book at the end of the month and show discount accounts in the general ledger.
1998 MAY 01, Balance Cash 2500, Bank 7400
02, Bought goods by cheque
2,000
05, Cash Sales
1,800
06, Banked cash
2,000
07, Paid by cheque , in cash discount 3%
A.John
1500
H.Hofman 3000
D. Jackson 14000
08, Received by cheque in each in case discount allowed 5%
B.Shaw
B. Benhim
J. Malthus
4000
3000
3200
10, Bought office furniture by cheque
3000
15, Cash drawing
500
20, Paid to A.Adleman 800 by cash less 3%
22, Received cash from M. Chikawe 1500 less 4%
30, Paid wages in cash
1,000
8. Enter the following transaction in SABRINA HAMZA purchases day book and post to the ledger.
May o1, Bought 10 bags of jeans @ sh 600 from Ibrahim
04, Purchased 2 liter of cooking oil at sh 500 each from Rising star
04, Bought 10 dozen of bedsheets 2000 per dozen from Naima General Supplier
15, Purchased from Kanduru 100 liters’ of baby milk at sh. 600 per liter.
99
9. The following bank statement was received by MR. MKETO, a trader on 31st December 1996
BANK STATEMENT
Date
2008
MARCH 01
08
16
20
Particular
DR
Balance
Ndimbwa
Cheque
J. Ramadhani
Cheque
Transfer credit
Standing order
Bank charge
CR
1220
2440
2080
3330
570
490
280
BALANCE
51970 DR
53190 DR
50750 DR
52830 DR
49500 DR
48930 DR
49420 DR
49700 DR
The following cash book is also available
CASH BOOK (BANK COLUMN)
DATE
2008
March03
March 21
March 31
March 31
PARTICULAR
FOLIO
AMOUNT
DATE
2008
March 01
March 06
March 30
March 30
F.Eid
Kulwa
Hamis
Balance
PARTICULAR
FOLIO
AMOUNT
2440
Balance
Bd
51970
3330
Ndimbwa
1220
1600
J.Ramadhani
2080
cd
52800
Abuu Nasra
4900
60170
60170
st
Required, Prepare the bank reconciliation statement as at 31 march 2008, starting with the balance as per
cash book (do not adjust the cash book).
100
Series No. 22
SECTION A (15 marks)
Answer all questions from this section
1. Choose the most correct answer from the following and write the letter in the box provided
i.
Which one of the following equations is correct?
A. Asset =liability -capital
B. Asset= capital + liability
C. Asset=capital – liability
D. Asset + capital= liability
ii.
Which of the following are two types of discounts?
A. Cash discounts and trade discount
B. Discount allowed and discount received
C. Trade discount and discount allowed
D. Cash discount and discount received
iii.
The debit side of the cash account is used to
A. Record amount received in the business
B. Record amount of capital
C. Record amount paid out of the business
D. Recording amount of goods sold or bought on credit
iv.
The arithmetical accuracy of the double entry system of the business transactions is observed in the?
A. Balance sheet
B. Final statement
C. Trial balance
D. Income statement.
v.
Whenever cost of goods sold is greater than sales the outcome presents
A) Gross profit
C) Net loss
B) Gross loss
D) Net profit
vi.
A credit balance in a bank account shows
A) The amount available at the end of the period
B) The amount that had been overspent at the end of the period
C) The total amount paid out at the end the period
D) The total amount received at the end of the period
vii.
At which ledger are supplier personal accounts founding
A) Nominal ledger
B) General ledger
C) Purchases ledger
D) Sales ledger
The document used to deposit money in the bank is known as
A) Bank pay -in –slip
B) Bank statement
C) Cheque
D) Payment voucher
viii.
101
ix.
Which of the following is not shown in the trial balance?
A) Purchases
C) Opening stock
B) Drawings
D) Closing stock
x.
Discount received is advantageous to the buyer because;
A) It reduces the quality of the goods bought on credit.
B) It reduces the value of the goods bought on credit.
C) It reduces the time to pay for goods bought on credit.
D) It reduces the cash to be paid for the goods to be bought.
2. Match the item in list A with the responses in list B by writing the letter of the correct
response below the corresponding item number in the table provided
LIST A
LIST B
i. These are overall funds of United Republic of
A. Consolidated fund.
Tanzania.
B. Authorized officer.
ii. Are payments for which the government has
C. Special fund.
received no value
D. Collector of revenue.
st
iii. The period which begins on 1 july of the current
E. Ambit of vote.
year and ends 30thjune of the succeeding year.
F. Family .
iv.
Is an officer and his spouse including children for
G. Virement.
fringe benefit purpose
H. Government accounting
v. Refers to the amount of money set aside from
year.
consolidated fund for specific purpose that is
I. Nugatory expenditures .
unforeseen
SECTION B (40 marks)
Answer all questions in this section
3. Mention any five types of books of original entry
i)…………………………………………
ii)…………………………………………..
iii)………………………………………….
iv)…………………………………………..
v)…………………………………………..
4. Define the following terms;
a) Contra Entry
b) Cash Discount
c) Bookkeeping Errors
d) Bank reconciliation Statement
e) Imprest system.
102
5. (a) Mention any four (4) errors which do not affect the agreement of a trial balance.
(b) Accounting records, reports, provide information to various interested parties (users) and
serve very useful purposes in the business. Identify six (6) users of accounting
information.
6. Complete the following tables by showing accounts are to be Debited and Credited from the
following transactions.
TRANSACTIONS
ACCOUNT TO BE
DEBITED
ACCOUNT TO BE
CREDITED
i. Bought motor vehicles by cash
ii. Paid insurance by cheque.
iii. Withdrew cash from bank
iv. Bought a van paying by cheque
v. Cash sales
SECTION C (45 marks)
Answer all questions in this section
7. Write up a three-column cash book for Masumbuko from the details given below. balance off
at the end of the month in march 2012.
March 1. 2012. Balance brought forward for cash Ths. 4,600 and bank 9,300.
3. 2012. Bought goods for cheque ……………
2,800
5. 2012. Cash sales to date ……………………
4,400
8. 2012. Banked cash …………………….……
2,500
10. 2012. Paid by cheque the following receiving a cash discount of 5% in each case.
John …………...……………..…….
1,600
Jackob …….……………...…….…
3,000
Jackson ………..……….…..………
1,400
12. 2012. Received by cheque the following allowing a cash discount of 3% in each
case.
Sara .................................................
4,000
Sauna ………….……...……….…….
3,000
Subira ………………..……….……
2,000
14. 2012. Bought furniture by cheque …….……
2,900
16. 2012. Cash drawings ……………….……….
1,000
18. 2012. Cash sales paid direct bank ……….….
3,500
22. 2012. Paid salary by cash …………………....
1,500
25. 2012. Cashed cheque …………………..………...
1,800
26. 2012. Paid Salum by cash, less 4% cash discount .... 2,000
103
28. 2012.
30. 2012.
Received cash from Samweli, less 4% discount … 2,500
Paid wages in cash ……….…………………… 1,300
8. The following balances were extracted from the books of Kipande company
Cash in hand
50,000
Cash at bank
250,000
Stock
100,000
Building
500,000
Fixture at fittings
100,000
Plant and machinery 300,000
Debtors
250,000
Creditors
350,000
Capital
1,000,000
Liabilities
200,000
Using the information provided, prepare statement financial position as at 31st December
2010.
9. On 31st December 2009 Suguru Traders cash books balance showed on debit balance of TSH
420, 000/= and bank statement showed a credit balance of Tshs. 396,000.
The following transactions did not appear in the bank statement
i)A cheque to Magesa Tsh 104,000
ii)Cheque received from Nyangasa Tsh 100,000.
The item which did not appear in the cash book include
i)Bank charges Tsh 18,000/- and bank interest received Tsh 15,000/=
ii)Cash paid direct into bank account Tsh 120,000
iii)Standing orders telephone charges Tsh 145,000
using the information given
a) Adjust the cash book to show the correct balance
b) Prepare bank reconciliation statement as at 31st December 2009 by using balance as per
bank statement
104
Series No. 23
1. For each of the following items write the letter of the correct answer in the answer sheet
provided.
(10%)
i.
ii.
iii.
iv.
v.
vi.
vii.
When cash is paid into the bank the effect is;
A. Assets of cash increase while bank assets decrease.
B. Assets of the bank increase while cash decreases
C. Fixed assets decrease
D. Assets of the business increase while liabilities of the business decrease.
Returned 4 boxes of phone at Tshs. 2000 to MHC Co. L.td. The double entry
will appear as;
A. DR. Sales returns A/C Tshs. 8,000 and CR. MHC Co. Ltd Tshs. 8,000
B. DR MHC Co. Ltd A/C and CR. Sales returns A/C
C. DR. Purchases returns A/C and CR. MHC Co. Ltd A/C
D. DR. MHC Co. Ltd A/C and CR. Purchases returns A/C.
I bring in the business 350,000/= for the aim of profit, this is:
A. Business control
B. Credit sale
C. Capital
D. Credit purchase
Waleed sells goods to Tulja but he receives money after one week, thus Waleed
is:
A. A trader
B. A creditor
C. A debtor
D. A final consumer
Bank overdraft is Best described as:
A. A firm wishing its money
B. Accuracy statement in a bank column
C. A statement showing a list of bank balances
D. A firm having paid more out of its bank statement
A document which acts as title for the expenses paid by a petty cashier;
A. Petty cash float
B. Petty cash voucher
C. Petty cash receipt
D. Petty cash folio.
Daniel wants to start up a business dealing with Sports equipment retailing
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:
E. Money borrowed from bank
105
F. Money saved for business start up
G. Money saved for building a private house
H. Cash received from the sales of shares
viii.
ix.
Given that; opening stock 4,000/=, purchases 7,000/=, closing stock 2,400/= and
carriage outwards 800/=. The amount of cost of sales should be:
A. 8,600/=
B. 7,800/=
C. 11,000/=
D. 6,200/=
A contra item is where:
(c) Transaction is recorded in bank column
(d) Bank balanced before it has been paid out
(e) Sales have been made by cash
(f) Double entry is completed within cash book
x.
Business entity concept means
A. Universal acceptance that business is separated from the owner
B. The owner has all control of the business
C. Debts of the owners are those of the business
D. Business accounts are kept together with those of the owner.
2. Match the descriptions of the government accounting terminologies in the LIST A with
their corresponding names in list B by writing the letter of the correct response beside the
item in the sheet provided (05%)
List A
List B
(i)
Maximum amount of money an accounting officer can spend (a) Controller and auditor
(ii)
Account of the government of the united republic of Tanzania
general
(iii) A person appointed by the treasury in writing and charged (b) Paymaster general
with the duty of regulating funding issues from the exchequer (c) Ambit of vote
account
(d) Nugatory expenditure
(iv)
Fund which is segregated for specific activities of the (e) Exchequer account
government
(f) Virement
(v)
An authority granted by one minister to another one access of (g) Special fund
funds when the formal is replaced by letter.
(h) Collector of revenue
106
SECTION B (40 Marks)
Answer all questions in this section.
3. Complete the following table by indicating the account to be debited and the account to be
credited from each transaction. (10%)
S/N
Transactions
E.g: Insurance paid for cash
(a)
Cash deposited into bank
(b)
Paid salaries for cash
(c)
A cheque received from Jane
(d)
Purchase of goods for cash
(e)
Bought motor van by cheque
Account to be
Account to be
Debited
Credited
Insurance account
Cash account
4. Briefly explain the following terms: (10%)
D. Re-imbursement
E. Imprest system
F. Cash float
G. Petty cash book
H. Bank statement
5. State the journal that deals with each of the following types of transaction. (10%)
i) Credit sales ______________________________________________________
ii) Returns of goods by customers ______________________________________
iii) Returns of goods to suppliers________________________________________
iv) Credit purchases __________________________________________________
v) Cash and cheques received __________________________________________
107
6. Complete the gaps in the following table.
S/NO NAME OF ACCOUNT
TYPES OF
ACCOUNT
i
Drawing Account
?
ii
?
Real Account
iii
Insurance account
?
iv
?
Personal Account
v
?
Norminal Account
SECTION C (45 Marks)
Answer all questions in this section.
7. Monica, a sole trader, commenced her business with Capital TZS 200,000 in cash and TZS
150, 000 at bank in 1st April 2021.
April 3. Bought goods for cash TZS. 100,000 and by cheque TZS. 90,000
5 Sold goods for cash TZS. 300,000; by cheque TZS. 200,000
10 Banked cash TZS. 250,000
14 Received Loan from Ipyana cash TZS. 50,000; by cheque TZS. 40,000
20 Paid wages for cash TZS. 50,000
22 Bought goods for cash TZS. 150,000; by cheque TZS. 100,000
25 Cash sales TZS. 450,000
26 Paid insurance by cheque TZS. 25,000
27 Withdraw cash from bank TZS. 100,000 for business uses
28 Sold goods for cash TZS. 150,000, by cheque TZS. 100,000
Required:
Enter above transactions into a two column cash book, balance the cash book and bring
down the balances. (15%)
8. Prince, a wholesaler, made the following sales during the month of April 2021:
April 1. Sold goods to Junior:
10 dozen of vitenge at TZS 8,000 a dozen
25 dozen of khanga at TZS 10,000 dozen
108
April 5. Sold goods to Mercy:
100 pairs of shoes at TZS 2,000 a pair.
200 pairs of boots at TZS 3,000 a pair
April 12. Sold goods to Baraka:
100 dozens of exercise books at TZS 3,000 a dozen
200 reams of papers at TZS 1,500 each.
April 15: Sold goods worth TZS 5,000 to Neema
April 22: Sold goods to Star Book store:
200 advanced leaner’s dictionaries at TZS 2,500 each.
800 fiction books at TZS 500 each.
Record the given transactions in the sales day book for the month of April 2021, and post
to the general ledger.
9. The following information relates to Maro Traders Ltd as at 1st December, 2019.
Inventory on 1st January 2019 was ……………………………………Tsh. 70,000
Purchases amounted to ………………………………………………Tsh. 350,000
Inventory on 31st December 2019 was valued at………………………Tsh. 50,000
Sales during the year was ……………………………………………Tsh. 620,000
Carriages on purchases was …………………………………………..Tsh. 15,000
Return on sales was …………………………………………………..Tsh. 12,000
Carriage on sales……………………………………………………….Tsh. 8,000
Return on purchases was ………………………………………………Tsh. 5,000
Salaries and wages ……………………………………………………Tsh. 11,000
Electricity ………………………………………………………………Tsh. 7,000
Commission received …………………………………………………Tsh. 10,000
Discount allowed ………………………………………………………Tsh. 4,000
Rent ……………………………………………………………………Tsh. 3,000
General expenses amounted to ……………………………………….. Tsh. 6,000
Required:
Prepare Maro Traders Ltd.’s Income Statement for the year ended 31st December 2019.
109
Series No. 24
SECTION A: (15 Marks)
Answer all questions in this section
1. Choose the most correct answer from alternative answer and write its letter in the space
provided
i) If a trial balance total do not agree, the different must be entered in.
A.
B.
C.
D.
The cash account
The capital accounts
Suspense account
The nominal account
ii) Given the cost of goods sold as Tshs. 800,000 and a margin of 20%, what is the
percentage of the mark up?
A.
B.
C.
D.
20%
25%
50%
75%
iii) Posting in book-keeping means
A.
B.
C.
D.
Making the first entry of double entry transaction
Entering items in a cash book
Making the second entry of double entry transaction
Making entries in different books
iv) Which of the following is not an Asset
A.
B.
C.
D.
Loan to some body
Bank overdraft
Cash borrowed from some body
Furniture bought on credit
v) Determine the amount of capital from the following Building Tsh.800 stocks 100,
Bank Tshs 15, creditor Tshs 44 Loan Tshs 14.
A. Tshs 857
B. Tshs 910
C. Tshs 915
110
D. Tshs 810
vi) An error caused by debiting Salma’s account instead of Salma’s account is called
A.
B.
C.
D.
Error of original entry
Error of omission
Error of complete reversal
Error of commission
vii) The two types of discounts are
A.
B.
C.
D.
viii)
Cash discount and credit discount
Cash discount and trade discount
Discount allowed and Discount received
Cash discount and bank discount
The value of closing inventories is found by
A.
B.
C.
D.
Adding opening stock to purchases
Deducting purchases form opening stock
Doing a stock taking
Adding closing stock to sales account
ix) Why is carriage to the income statement? Because it is:A. An expenses connected with buying goods
B. An expenses connected with selling goods
C. Carriage outwards goes to the profit and loss account not entered in the balance
sheet
D. Not entered in the balance sheet
x) Given a cash float 150,000. If 120,000 is spent in the period. How much will be
reimbursed at the end of that period?
A. 150,000
B. 270,000
C. 120,000
D. 30,000
2. Match the items in column A with the responses in column B by writing the letter of the
correct response beside the item numbers
COLUMN A
COLUMN B
111
i.
ii.
iii.
iv.
v.
Refers to the process of rectifying the difference
between bank statement and cash book
The amount of money which a petty casher start
with each period
Is a system in which refund is made to the total
paid out in a period so that the float can retain to
it’s a greed level.
Is the person who is responsible for petty cash
book
Book of original entry used to record prompt
receipts and payment
A.
B.
C.
D.
E.
Imprest system
Cash book
Petty cash book
Float
Bank reconciliation
statement
F. Petty cash expenditure
G. Petty cashier
H. Bank reconciliation
SECTION B (40 Marks)
Answer ALL questions.
3. Differentiate the following terms as used in bookkeeping
a)
b)
c)
d)
e)
Contra entry and double entry system
Error of omission and error of commission
Development expenditure and revenue expenditure
Carriage inward and carriage out ward
Exchequer account and nominal account
4. a) Define the word general journal.
b) describe any four uses of general journal.
5. “KARIBU” keeps his petty Cash book on the imp rest system, the imprest being 2,500. For
the Month of April 2021 his petty cash transaction were as follows:
1/4/2019: Petty cash balance
120/=
2/4/2020: Petty Cashier presented voucher to cashier and obtained cash to restore the
imprest Tshs 2380/=
4/4/2019: Bought postage stamps
650/=
9/4/2019: Paid to Bahaye a creditor
255/=
13/4/2019:
Paid bus faire
100/=
17/4/2019:
Bought envelopes
90/=
112
23/4/2019: Received cash for personal Transport charge
88/=
26/4/2019 Bought petrol
1050/=
Required:
Enter the above transactions in the petty cash book and balance the petty
cash
book at 30th April 2019 bringing the balance on 1st May.
6. Nathan enterprise’s sells goods to mwaisaka ltd 2100 cartons of merchandised salt at shs
400,000/= and trade discount allowed was 10% and cash discount of 5% if payments would
made within 30 days. If mwaisaka ltd pays within 30 days
Calculate
(i) Trade discount
(ii) Invoice price
(iii) Cash discount
(iv) Amount to be paid by mwaisaka.
SECTION C (45 MARKS)
Answer all questions from this section
7. Bring forward balances from Kassim’s Three Column Cash Book on 1 May 1998 and record
the following transactions that took place in May. Balance the Cash Book on 30 May 1998.
May 1 Balance b/f, Cash in Hand, Shs. 60000; Cash at Bank, Shs. 58000.
3 Received a cheque from J. Baraka, Shs 3,380 less 2 % discount.
5 Paid transport in Cash, Shs 3000 less 4% discount
7 Issued a cheque to NBC Finance Corporation, Shs. 8,000 in part settlement of a
loan.
9 Sold goods for cash, Shs.1, 200 and immediately deposited Shs. 1,000 with bank.
11 Paid wages in cash, Shs 2200 less 6 % discount.
13 Received a cheque from P. Alimadi, Shs. 2,100.
15 Paid rent by Cheque, Shs. 2,400
17 Sold goods against a cheque, Shs 10000 less 10% discount.
19 Paid telephone bill in cash, Shs. 489
21 Paid water bill in cash, Shs 311
23 Received cash from Mohammed, Shs. 1,290
25 Withdrew cash from bank for office use, Shs 7500.
27 Paid salaries in cash, Shs 2500
28 Issued a cheque for manager’s salary, Shs. 3,750.
Bought stationery for cash Shs 6300 less 3% discount.
8. The following is a trial Balance Extracted from the Books of Pangoni Enterprise Co. Ltd
as at 31st December 2019. You are to draw up set of the final Accounts and statement of
financial positiom
113
S/NO F
NAME OF ACCOUNT
DR
CR
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Capital and Drawings
Purchases and Sales
Returns
Carriage on Purchases
Premises
Stock at start
Carriage on Sales
Insurance
Land and Building
Debtors and creditors
Furniture and Fittings
Cash at Bank
Cash in hand
Bad debts
Depreciation
Transportation.
1500
2538
650
22
1000
1560
1050
180
2500
1040
1500
1900
1000
120
200
150
16910
7200
5650
60
4000
16910
Additional information’s
Stock at close valued at 1060/=
9. The following list of balances was extracted from the books of Simon and sons Ltd. At 31st
December, 1988. You are required to prepare Trial balance as at that date.
Purchases………………………………………………………………….15, 740/=
Sales……………………………………………………………………….32, 830/=
Stock (1st Jan. 1988)……………………………………………………… 3,790/=
Stock (31st Dec. 1988)……………………………………………………. 3,030/=
Returns inwards…………………………………………………………….120/=
Returns outwards…………………………………………………………310/=
Commission received……………………………………………………..7170
Carriage inwards……………………………………………………………50/=
Carriage outwards…………………………………………………………140/=
Drawings……………………………………………………………….…7,360/=
Premises……………………………………………………………………38,000/=
Fixtures and fittings………………………………………………………..10,500/=
Wages and salaries………………………..................................................9,310/=
Rent received……………………………………………………………….540/=
Advertising…………………………………………………………….…..1,180/=
Cash at Bank………………………………………………………………2,010/=
Cash in hand……………………………………………………………….60/=
Debtors……………………………………………………………………..2,240/=
Creditors……………………………………………………………………1,870/=
Capital……………………………………………………………………..54,950/=
Machinery………………………………………......................………....7170/=
114
Series No. 25
SECTION A (15 Marks)
Answer all questions in this sections
1. For each of the items (i)-(x), choose the correct answer from the among the given
alternatives and write its letter in the box provided.
i.
A book which is used to record minor expenses of the firm is called:
A. Cash book
B. Journal
C. Petty cash book
D. Three column cash book
ii.
Book keeping is mainly concerned with:
A. The arranging of books in alphabetical order
B. Recording of financial data relating to business operations
C. Creating employment to people
D. Provide loans to people
iii. The statement used to check the correctness of the cash book balance and bank
statement balance is known as:
A. Bank reconciliation statement
B. Trial balance statement
C. Statement of financial position
D. Assets and capital statement
iv.
The arithmetical accuracy of the double entry system of business transactions is
checked from the:
A. Income statement
B. Final account
C. Trial balance
D. Statement of financial position
v.
Cash or goods taken out of the business for private use are known as:
A. Losses
B. Contra-entry
C. Gains
D. Drawings
vi.
Unpresented cheques are those which appear on:
A. Credit side of bank sheet but not seen on the debit side of cash book
B. Debit side of cash book but not seen on the credit of bank statement.
C. Debit side of bank sheet but not seen on the credit side of cash book
D. Credit side of cash book but not seen on the debit side of bank statement
115
vii.
viii.
ix.
x.
The excess of sales over cost of goods sold is called:
A. Net profit
B. Net loss
C. Gross profit
D. Gross loss
A cheque which is denied payment by the bank is known as:
A. Dishonoured cheque
B. Bank cheque
C. Honoured cheque
D. Uncredited cheque
Proper document used when depositing money in the bank is known as:
A. Invoice
B. Pay-in-slip
C. Bank statement
D. Payment voucher
The sales day book can be described as:
A. A list of credit sales
B. A list of supplier account
C. Part of the double entry system
D. Part of real account.
Answers
Column A
I
Ii
iii
iv
v
vi
Vii viii
Ix
Column B
2. For each of the items (i)- (v), match the descriptions of the terms used in Book Keeping
in Column A with their corresponding names in Column B by writing the letter of the
correct response below the corresponding item number in the table provided.
Column A
Column B
(i)
Occur when an item is entered in the wrong
A. Errors of omission
class of account.
B. Error of wrong
(ii)
Occur where the correct accounts are used but
posting
each items is shown on the wrong side of
C. Errors of complete
account.
reversal of entries
(iii) Is where the transaction is completely omitted
D. Errors of original
from the books
entry
(iv)
These errors occur where errors cancel each
E. Error of principle
other.
F. Errors of
(v)
Occur when the correct figure is entered in the
commission
wrong person account.
G. Compensating
errors.
H. Wrong totaling
Answers
116
x
Column A
Column B
3.
4.
5.
6.
i
ii
iii
iv
v
SECTION B (40Marks)
Answer all questions in this section.
Mention five key users of financial statement.
Explain the following terms:
i) Consolidated fund
ii) Virament
iii) Three column cash book
iv) Suspense
v) Books of prime entry.
Explain five objectives of book keeping
Indicate the following whether nominal, Real or personal.
S/No. Name of account
Classification of Account
1. Cash account
_______________________
2. Boneli account
________________________
3. Capital account
________________________
4. Computer account
_______________________
5. Sales account
________________________
6. Carriage account
______________________
7. Wages account
________________________
8. Genesi’s account
________________________
9. Machine account
________________________
10. Shuayb account
________________________
SECTION C (45Marks)
Answer all questions in this section.
7. Enter the following transactions in the sales Day Book and post to the ledger accounts for
the month of November 2020.
1st November.
Sold to Bagamwezi
10 pairs of shoes at @ TZS 13,000
20 meters of cotton cloth @ TZS 10,000
Less 10% Trade discount
th
16 November.
Sold to kakakuona ltd
117
28th November.
10 pieces of jeans at TZS 5,000 each
50 pieces of woollen pullover @ TZS 1,500
Less 10% Trade discount
Sold to kariakoo Traders
10 Rolls of Curtains @ TZS 15,000
15 Blankets at TZS 8000 each
10 Bed sheets at TZS 12,000 each.
8. On 31st December 2018, the Cash book balance of Sina pesa was TZS 274,000 whereas
the Bank Statement showed a credit balance of TZS 253,700. In comparing these two
balances, the following were discovered;
a) Cheques not presented for payment TZS 13,100
b) Cheques paid into bank but not credited by the bank TZS 41,000
c) Items shown in the Bank Statement but not yet entered in the cash book
(i)
Bank charges TZS 3,200
(ii)
Standing order TZS 9,300
(iii)
Credit transfer TZS 20,100
Required:
(a) Adjust the cash book to show the correct Cash Book balance
(b) Prepare a Bank Reconciliation Statement starting with the adjusted Cash Book
balance.
9. Enter the following transactions in petty cash book showing analysis column for postage,
stationery, travelling and ledger. Restore the imprest and bring down the balance for the
commencement of the following month.
The cash float received from the main cashier was TZS 24,000 on 1st January 2021
3rd January 2021 paid stationery
TZS 5000
th
10 January 2021 He paid ruled paper
TZS 400
15th January 2021 He paid postage
TZS 5000
th
20 January 2021 he paid travelling
TZS 2000
th
25 January 2021 He paid stamp
TZS 600
th
28 January 2021 He paid Benidictor.
TZS 8400
118
Series No. 26
1. For each of the following items (i) - (x) choose the most correct answer from among the
given alternatives and write its letter for the answer selected in the box provided.
(i)
Carriage inwards is charged to the Trading Account because:
A. It is not a Balance sheet item
B. It is not part of our motor expenses
C. Return inwards also goes to the Trading Account
D. It is added with purchases
(ii)
In the Trading Account the return inwards should be:
A. Added to cost of goods sold
B. Deducted from purchases
C. Deducted from sales
D. Added to sales.
(iii)
The cost of goods sold is ascertained as:
A. Closing stock + net purchases – opening stock
B. Opening stock + purchases returns – closing stock
C. Opening stock + purchases – returns outwards
D. Opening stock + net purchases – closing stock.
(iv)
The Total of sales journal is entered on:
A. The debit side of the sales Day Book
B. The credit side of the sales account in the General ledger
C. The debit side of the sales account in the General ledger
D. The credit side of the sales Day Book.
(v)
Accounting equation is satisfied by,
A. Capital = Asset + liabilities
B. Liabilities = capital – Assets
C. Asset = Capital+Liabilities
D. Asset= Capital-Liabilities
119
(vi)
Business entity concept means
A. Universal acceptance that business is separated from the owner
B. The owner has all control of the business
C. Debts of the owners are those of the business
D. Business accounts are kept together with those of the owner.
(vii)
The descending order in which current assets should be shown in the Balance sheet
is
A. Cash, bank, debtors , stock
B. Debtors, stock, bank, cash
C. Debtors, stock, cash, bank
D. Stock, debtors, bank, cash.
(viii)
Which of the following is the main book of account
A. The cash book
B. The journal
C. The ledger
D. The journal proper
(ix) The transfer of value from one person to another is
A. Distribution
B. Transfer
C. Transaction
D. Transportation
(x)
A trial balance is prepared in the business in order to;
A. Calculate profit or loss
B. Check the accuracy of ledger entries
C. Check bank balance
D. Provide a list of assets and liabilities.
ANSWERS
i
Ii
Iii
Iv
V
vi
120
Vii
viii
ix
x
2. Match the items column A with the responses in column B by writing the letter of the
correct response beside the item number in the space provided
i.
ii.
iii.
iv.
v.
LIST A
All assets are recorded in the books of accounts at their
purchases price.
The concept state that a business firm will continue to carry
on its activities for unforeseeable future of time.
The revenues and expenses must be compared to determine
the profit or loss made by the business
Only transactions which can be expressed in terms of money
are recorded in the books of account.
The owners affairs and his or her business must be separated
LIST A
i
ii
Iii
Iv
LIST B
A. Prudence concept
B. Money measurement
concept
C. Revenue concept
D. Business entity concept
E. Book-keeping concept
F. Going concern concept
G. Matching concept
H. Historical cost concept
I. Dual aspect concept
J. Accounting concept
v
LIST B
SECTION B (40 marks)
3. Write short notes on the following terms(vivid example will increase the credit)
(i)
Statement of financial position
(ii)
Book- keeping
(iii)
Books of prime entry
(iv)
Posting
(v)
Going concern concept
4. Indicate whether the following accounts are nominal, real or personal
S/N
I
Ii
iii
Iv
V
NAME OF ACCOUNT
Motor vehicle
Plant
Commission received
Cash account
KB company ltd
CLASSIFICATION
5. From the following transactions indicate the accounts to be debited and account to be
credited roman (i) is done for you as an example.
121
Transactions
i.
Goods returned to supplier
ii.
Received cash from Mlasi
iii.
Goods returned from Kaiza
iv.
Sold goods on credit to Ibra
v.
Paid wages by cheque
vi.
Bought stationary by cash
Account to debit
Account to credit
Supplier a/c
Return outward a/c
6. Mention the source documents used to prepare the following books of prime entry.
i.
Return outward day book…………………………………………………………...
ii.
Return inward journal ……………………………………………………………...
iii.
Sales day book…………………………………………………………………
iv.
Bought journal………………………………………………………………….
v.
Petty cash book…………………………………………………………………
SECTION C (MARKS 45)
7. On 31 March 2010 the bank column on Mwinyimgeni’s cash book showed a debit balance
of TZS 60, 000/=.
A bank statement written up to 31 March 2010 disclosed that the following items had not
been entered in the cashbook:
(i)
The sum of TZS 150,000/= received from E. Godfrey by credit transfer
(ii)
The transfer of TZS 100, 000/= from Mwinyimgeni’s private bank deposit account
into his business bank account.
(iii)
Bank charges TZS 18, 000/=.
On receiving the bank statement, the following items were discovered:
(i)
Cheques drawn in favour of creditors totallling TZS 830,000/= had not yet been
presented
(ii)
Cash and cheques TZS 410, 000/= had been entered in the cashbook but not yet
credited by the bank.
You are required to prepare as at 31 March 2010
(a)
Adjusted cash book balance
(b)
A Bank Reconciliation statement showing the balance as per adjusted cash book
122
8. June 2020
1 Balance of cash in hand
500.00
Balance at bank
10,000.00
2 Received cash from Tego
250.00
3 paid Mpopoka by cheque
1200.00
4 Received cheque from gunda and banked it
6 Received cash from Makonta
300.00
120.00
10 paid rent by cheque
500.00
15 paid wages by cash
200.00
18 paid cash to bank
100.00
20 Drew cash from bank for office use
200.00
Enter the above transactions in the two column Cash Book and carry down the balance as
at 25th June 2020.
9. Given:
Cash
18,000
creditors
21,000 Machinery
33,000
Debtors
9,500
capital
56,000 Furniture
7,000
Stock
37,500
Net profit
10,000
Bank loan
20,000
Drawings
2000
From the above information prepare Statement of financial position as at 31st March, 2017
123
Series No. 27
SECTION A (15 MARKS)
Answer all questions in this section
1. For each of the following items (i)-(x) choose the correct answer and write its letter in the
box provided
(i)
Which of the following is not the objective of book keeping?
(a) Bridge the gap between buyer and seller
(b) Fair tax assessment
(c) Paying tax to the government
(d) Creation of employment
(ii)
A system where by a petty cashier is reimbursed to maintain his or her original
financial position is known as
(a) Double entry system
(b) Petty cash system
(c) Imprest system
(d) Columnar petty cash book
(iii)
A cheque entered in the cash book but not yet passed through the bank for
payment is called
(a) Standing order
(b) Dishonored cheque
(c) Unpresented cheque
(d) Uncredited cheque
(iv)
Which of the following account is used to determine gross profit for a given
period
(a) Sales account
(b) Trading account
(c) Profit and loss account
(d) Cash account
(v)
At what side does the total of discount received in the cash book is posted
(a) Credit side of discount received account
(b) Debit side of purchases account
(c) Credit side of creditors account
(d) Debit side of discount received account
(vi)
The ledger account where debtors are found is categorized as
(a) Nominal ledger
(b) Purchases ledger
(c) General ledger
(d) Sales ledger
(vii) The goods bought for resale but remain unsold to the end of the financial year are
called
124
(viii)
(ix)
(x)
(a) Returns inwards
(b) Closing stock
(c) Returns outwards
(d) Opening stock
The authority letter issued by the accounting officer or deputy covering authority
for specific expenditure is known as
(a) Exchequer issue notification
(b) Public money
(c) Warrant of fund
(d) Consolidated fund
Which of the following are the correct sources of government revenue
(a) Taxation, licenses fees, grants and borrowing
(b) Sales, gross profit, capital expenditure and rent payable
(c) Miscellaneous expenses, interest from investments, loans
(d) Taxation, rent receivable and dividends payable
Which of the following presents current assets in the balance sheet
(a) Bank overdraft
(b) Cash at bank
(c) Creditors
(d) Furniture
2. Match the items in list A with the responses in list B by writing the letter of the correct
response below the corresponding item number in the table provided
List A
(i)
(ii)
(iii)
(iv)
(v)
The excess of current assets
over current liabilities
Statement which shows the
financial position of the
business in a particular period
The properties bought for the
business uses and have long
life
The amount of money or
money’s worth invested in the
business for the purposes of
making profit
The form of capital which is
obtained by adding working
capital to fixed assets
Answers
List A (i)
List B
(ii)
(iii)
(iv)
125
List B
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
(v)
Current liabilities
Balance sheet
Profit and loss account
Capital employed
Net profit
Capital
Total assets
Long term liabilities
Current assets
Trial balance
Working capital
Fixed assets
Cash
Assets
SECTION B ( 40 MARKS)
3. Write short notes on the following terms
a. Book keeping
b. Trial balance
c. Purchase day book
d. Contra Entry
e. Double Entry
4. (a) What is income statement?
(b) List down four (4) users of financial statements
5. (a) What is Bank reconciliation statement?
(b) List down four (4) reason why Bank statement may not come into disagreement?
6. (a) What is Government accounting?
(b) What are purpose of government accounting, mention three (3)
SECTION C (45 MARKS)
7. The following information was extracted from the cash book and bank statement of Mr. J.
L Kimondo for the month ended 31st January, 1994
(i)
Balance shown in the bank statement Tshs 1450
(ii)
Bank charges not in the cash book Tshs 128
(iii)
Cheque paid in but not yet credited 1905
(iv)
Standing order in respect of insurance not in the cash book Tshs 750
(v)
Cheque issued but not yet presented for payment 2830
Prepare Bank reconciliation statement at the end of the month ended 31st January,1994
8. Abaa presented to you with a trial balance showing a difference which he has carried to
suspense account. Upon examination you find the following error.
a) The purchases journal was undercast by Shs 850
b) A debit balance of Shs 450 had been brought forward in karungaru’s account as
Shs 540
c) Carriage inwards Shs 230 had been posted to carriage outward account
d) Sales return amount to Shs 160 had been credited to sales account
e) Cash payment of Shs 715 to a creditor, correctly entered to his account, had been
omitted from cash book
Required
(i)
To pass journal entries to correct the above errors
(ii)
Prepare suspense account as appeared in relevant journals in (i) above.
Balancing account is not necessary
126
9. The trial balance below belongs to Kamwezi traders of mbeya for the year ended 31st
December, 2013
DETAILS
Inventory 1st January,2013
Purchases and sales
Capital
Land and Building
Machinery
Carriage inwards
Carriage outwards
Returns
Motor vans
Debtors
Creditors
Salaries and wages
Rent and rates
Discounts
Insurance
Loan from CRDB
Drawings
Cash at bank
Cash in hand
DR
9,500
11,500
19,000
22,000
1,200
1,700
1,000
16,000
9,000
CR
28,500
44,800
800
17,000
3,000
1,500
1,000
1,000
3,500
10,000
2,200
2,000
3,000
104,600
Additional information; inventory 1st December, 2013 was 2,000
Required;
(a) Income statement for the year ended 31st December, 2013
(b) Statement for financial position as at 31st December,2013
127
104,600
Series No. 28
SECTION A (15 Marks)
Answer all question in this section.
1. For each the items (i)-(x), choose the correct answer from among the given alternatives and
write besides the item number in the answer booklet provided.
i. During the month January, a petty cashier was provided with opening cash float of
Tsh. 70000. However, at the end of the same month the closing cash float balance
was Tsh. 15900. How much should be reimbursed to the cashier at the end of the
month?
A. TZH. 15,900
B. TSH. 70,000
C. TSH. 54,100
D. TSH.
140,000
ii. Determine the amount of capital from the following: Premises TSH. 20,000, Loan
to Khairunisah TSH. 17,000, Stock TSH. 35000, Creditors TSH. 5000, loan from
Ralmas TSH. 22,000.
A. TSH. 50500 B. TSH. 45500 C. 45000 D. TSH.
48000
iii. Gross profit is……………
A. Excess of sales over sales returns B. Cost of sales less expenses
C. Sales less purchases
D. Sales less cost of sales
iv) The following are the source documents
A. Debtors, Stock, Bank, Cash
B. Sales, Credit note, Cheque
C. Invoices, Cash receipts, Debit note D. Credit note, Debit note, Cash
v) Credit Purchases is first entered in a.
A. Purchases ledger B. Purchases journal
C. Purchases return journal
D. Purchases account
vi) An error which occur when a transaction transaction is completely omitted in the
books of accounts.
A. Error of commission B. Error of commission C. Error of principle
D. Error of transposition
vii) A statement which shows the financial position of the business is called
A. Trading account
B. Profit and loss account C. Trial balance
D. Balance sheet
128
viii) An officer appointed in writing by the Treasury and charged with the duty of
collecting and accounting for specified public money is called
A. Collector of revenue
B. Receiver of revenue
C. Authorized office
D. Accounting officer
ix) The following is not correct?
ASSETS
LIABILITIES
CAPITAL
A
6540
1120
5420
B
7850
1250
6600
C
8200
2800
5400
D
9550
1150
8200
x) The document used to deposit money in the bank is known as
A. Bank pay-in-slip
B. Bank statement
C. Cheqeu
D. Payment voucher
2. Match the response in list A with the statement in list B by writing the letter of the correct
response beside the item number.
LIST A
i.
A book of prime entry used to record
LIST B
A. Purchases
all goods bought on credit
ii.
An account where total returns
B. Sales returns journal
outward is to be posted
iii.
A book of prime entry used to record
C. Purchases journal
all transactions which cannot be
recorded in any other books of prime
entry
iv.
A book of prime entry used to record
returns outward from goods bought on
credit
129
D. Sales journal
v.
A book of account where the total
E. Journal proper
credit purchases is posted
F. Goods received
G. Purchases return day
journal
H. Sales
I. Petty cash book
J. Debit note
K. Purchases invoice
L. Cash book
M. Purchases returns ledger
SECTION B (40 Marks)
Answer all questions in this section
3. (i) Define the following bookkeeping terms
a. Cost of goods sold
b. Sales
c. Margin
d. Mark-up
e. Purchases
(ii) A business has the cost of goods sold worth TSh. 150,000 and the mark up of
40%. Calculate the amount of sales.
4. Show how both external and internal users of financial statements benefits from
using financial statements.
5. Mention any ten (10) components of Income statement
6. State the reasons for sending back commodities to supplier by the customer.
130
SECTION C (45 Marks)
Answer all questions in this section
7. On 31st December 2021 Khairunisah cash book balance showed a debit balance
of Tsh. 840,000 and bank statement showed a credit balance of Tsh. 792000.
The following transactions did not appear in the statement:
a) A cheque to Ralmas TSh.208000
b) Cheque received from Kharisma TSh. 200000
The items which did not appear in the cash book include
a) Bank charges TSh. 36000 and Bank interest received TSh. 30000
b) Cash paid direct into bank account Tsh 240000
c) Standing Order- insurance Tsh 290000
Using the information given;
i) Adjust cash book to show how the correct balance
ii) Prepare bank reconciliation statement as at 31st December 2021 by using
balance as per bank statement.
8. Khairunisah commenced business on 1st January 2021 with capital in cash TSH 200000. Her
transactions during January were as follows
TSh
January 1. Purchased goods from Naureen Rabia on credit
2. Sold goods on credit to Shilla
40000
10000
3. Paid rent
60000
4. Cash purchases
16000
6. Paid postage charge
1000
8. Drawn cash for private use
5000
13. Purchased goods on credit from Morembwa
16. Sold goods on credit to Mkwizu
50000
36000
17. Paid salaries
9600
18. Cash sale to date
6000
131
19. Paid adverting expenses
7000
22. Cash purchases
18000
24. Bought furniture for cash
10000
27. Purchased machinery for cash
60000
28. Paid wages
16000
Required; Open and balance off cash account
9. Your book keeper extracted a trial balance on 31st December 2021 which failed to agree by
330,000 a shortage being on the credit side of the trial balance. A suspense account was opened.
Later the following errors made in 2021 were found 2022.
i. Sales day book had been undecast by TSh. 100000
ii. Sales of TSh. 25000 to J. Jamal had been debited in error to J, Juma account
iii. Rent account had been undercast TSh. 70000
iv. Discount received account had been undercast by TSh. 300000
v. The sale of motor vehicles at book value had been credited in error to sales account TSh.
360000.
a) Draw up suspense account
b) If net profit had previously been calculated at TSh. 7900000 for the year ended 31st
December 2021, Show the calculations of the corrected net profit.
132
Series No. 29
SECTION A (15 Marks)
Answer all question in this section.
1. For each of the following items write the letter of the correct answer
i. A trial balance is prepared in the business in order to……………………. (
)
A. Calculate profit or loss
B. check bank balance
C. check the accuracy
of ledger entries
D. provided a list of assets and liabilities
ii. An accounting concept which assumes a business continues to exist for the
foreseeable future is known as……………………….
(
)
A. business entity
B. matching C. going concern
D. historical
cost
iii. Cash a good taken out of business for personal use are called;
(
)
A. drawing by owner B. property by owner C. loan to owner D. cash to owner
iv. Double entry system means: -……………………………
)
A. recording business transaction in the book of accounts
B. recording of business transaction once in the book of account
C.recording of business transaction several times in the books of account
D. recording of business transaction twice in the books of accounts
v. One of the following statements is not correct………………….
(
)
A. Asset – Liability = Capital
B. Liabilities + Assets = Capita
Assets – Capital = Liabilities
D. Liabilities + Capital = Assets.
(
C.
vi. The periodical total of the purchases returns day book is transferred the
(
)
A. Debit side of the return outward Account B. Debit side of the return outward
Journal C. credit side of the return outward account D. Debit side of the
purchases Account
vii. Which of the following is not a source document?.....................( )
A. An invoice
B. Receipt
C. Payment voucher
D. Ambit of
vote
133
Which of the following is an expense to a business………………………?
(
)
A. Loan interest
B. Loan from Hali safi
C. Loan to uncle
D. loan
repayment
viii.
ix. If a petty cash book balance at the end of period was Tsh. 2800, if Tshs. 7200 is
space in the period, how much was desired cash
float?................................................
A. Tshs. 10,000
B. Tshs 4,400
C. Tshs. 7,200
D. Tshs. 2,800
x. Namwinyo bookshop received a trade discount of 20% and a cash discount 5% on
goods worth Tsh. 150,000. How much will be required to pay?............... (
)
A. Tsh. 142,000
B. Tsh. 114,000
C. Tsh. 110,000
D. Tsh.120,00
2. For each of the item (i-x), matching the description of the terms used in book- keeping in
list A with their corresponding name in list B by writing the letter of the correct response
below the corresponding item number in the table provided.
LIST A
LIST B
i.
Excess of gross profit over
A. Compesatingen
expenses
B. Working capital
ii. Where two errors of equal
C. Receiver of revenue
amount, but on apposite side of
D. Net profit
the accounts, cancel each other
E. Carriage inward
out
F. Carriage outward
iii. Occurs when a trade has bee
G. Transposition error
allowed to issue chaque whose
H. Collector of revenue
total amount is in excess of the
I. Bank over draft
fund held by his bank
iv.
If an officer responsible with the
duties of collecting the public
money
v.
Expenses incurred when a seller
transfer goods to the customer
SECTION B (40 Marks)
Answer all question in this section.
134
3. When comparing the balance at bank as shown in the cash book with that given in the
bank statement issued by bank, it is more likely that these two balances may not agree.
Briefly describe five reasons for the disagreement.
4. Complete the gaps in the following table
NO ASSETS
CAPITAL
i 157,000
86,500
ii ________________
247,000
iii
273,000
____________
iv
__________
281,500
v
205,000
176,200
LIABILITIES
____________
88,500
63,500
134,300
_____________
5. Describe five objectives of Book keeping
6. What are the reasons of goods return to supplier?
SECTION C: (45Marks)
Answer all question in this section.
7. On 30thApril 2020 a cash book of Msongo, showed a credit balance of Tsh. 72,820. On
checking the cash book with the bank statement, her revealed the following
i.
The following cheque were not presented
KanyaruTsh. 42,380
SadaraTsh. 50,480
ii.
Standing order to TanescoTsh. 25,000
iii. Bank charge Tsh. 9,000
iv.
Cheque received but not yet credited by the bank amounted to Tsh. 6,960
Required
a) Bring the cash book up to date and the
b) Prepare a bank reconciliation statement as at 30th April 2020
8. Edvina shop made the following sales during the month of April 2019;
April 1. Sold goods to Salama
10 dozen of vitenge at TZS 8,000 a dozen
25 dozen of khanga at TZS 10,000 a dozen
April 5. Sold goods to Bujiku
100 pairs of shoes at TZS 2,000 a pair
200 pairs of boots at TZS 3,000
apair
April 12. Sold goods to Mkemwa
100 dozen of exercise books at TZS 3,000 a dozen
200 reams of papers at TZS 15,000 each
135
April 15. Sold goods worth TZS 5,000 to Mwakalenge
April 22. Sold goods to Mikumi book store
200 advanced learner’s dictionaries at TZS 2,500 each.
800 fiction books at TZS 500 each.
Record the given transactions in the sales day book for the month of April 2019.
9. The following list of balances was extracted from the books of Sinahela and sons ltd at 31st
December 2012. you’re required to prepare the income statements and financial position
for the year ended 31st December 2012.
Purchases
157,000
Sales
328,300
st
Stock (1 jan 2012)
37,900
Returns inwards
1,200
Returns outward
3,100
Carriage inwards
500
Rent received
5,400
Carriage outwards
1,400
Rent received
5,400
Carriage outwards
1,400
Drawings
73,600
premises
380,000
Fixture and Fittings
105,000
Wages and salaries
93,100
Advertising
11,800
Cash at bank
20,100
Cash at hand
600
Debtors
22,400
Creditors
18,700
Capital
549,500
st
Stock (31 December 2012)
30,300
136
Answers: Series No. 1
QN.01. 10 MARKS = 1 MARK@
i
ii
iii
iv
v
vi
D
D
C
A
B
C
Qn. 02. 05 marks = 1 mark @
List A
i
List B
B
D
vii
A
viii
B
ii
ix
B
x
D
iii
F
iv
C
v
G
QN. 03 a). Good explanation carries 1mark @ = 05 marks
i. Double entry system: is the system in which for every business transaction amounts must
be recorded in a minimum of two accounts.
ii. Accounting equation: state that a company’s total assets are equal to the sum of its
liabilities and its shareholders’ equity.
iii. Trial balance: is the list of debit and credit balances from the ledger accounts for
checking arithmetical accuracy of double entry.
iv.
Public money: money that has been collected by the state and for the benefits off all
citizens of a country.
v. Cost of goods sold: is the total amount that business paid as a cost directly related to the
sales of the product.
b). any five source of government funds; 05 marks = 1 mark@
i. Taxes
ii. Fines
iii. Fees
iv.
Grants
v. Investment
vi.
loans
QN. 04. I mark @ = 10marks
1. 62,000/=
2. 56,000
3. 130,000
4. 14,600
5. 122,200
6. 35,000
7. 81,000
8. 90,000
9. 24,000
10. 17,000
137
Qn. 05. 1 mark @ = 10 marks.
a) DR. BANK ACCOUNT
b) DR. WAGES ACCOUNT
c) DR. BANK ACCOUNT
d) DR. PURCHASES ACCOUNT
e) DR. MOTORVAN ACCOUNT
CR. CASH ACCOUNT
CR. CASH ACCOUNT
CR. NICKSON ACCOUNT
CR. CASH ACCOUNT
CR. BANK ACCOUNT
QN. 06. 2 MARKS @ = 10 MARKS. For any good five points
i.
ii.
iii.
iv.
v.
vi.
vii.
Unpresented cheque
Uncredited cheque
Standing order
Bank charges
Direct credits
Ommissions
Dividends
QN. 07. 15 MARKS = 0.5 each tick. Including heading and sides.
DR.
DAT
E
DETAILS
1/02
Balance b/d
THREE COLUMN CASH BOOK
DIS CASH BANK
DA
DAETAI
C.
TE
LS
ALL
11,000 38,500
7/02 H .Bahati
3/02
P.Gaga
500
10/02
Bank “c”
17/02
Sima
400
15,600
25/02
B.Bahati
300
11,700
28/02
Balance c/d
15,000
29,200
1200
01/03
Balance b/d
15,000
26,000
CR.
DISC. CASH
REC
BANK
300
11,700
10/0
2
20/0
2
22/0
2
28/0
2
Cash “c”
15,000
Wages
31,500
28/0
2
Balance
c/d
T .Gulam
1000
19,000
A .Somji
700
27,300
104,500
26,000
2000
01/0
3
26,000
QN. 08. 0.79 @tick = 15 marks, including heading
138
Balance
b/d
26,000
104,500
29,200
Nyakibinda’ s region
Income statement for the year ended 31st December, 1987
sales
130,000
Less: sales returns
10,000
Less: cost of sales
Opening stock
12,000
Add: purchases
72,000
Less: returns outwards
1,500
70,500
Cost of goods available for sale
82,500
Less: closing stock
7,500
Gross profit
Add: other incomes: interest received
Total income
Less: operating expenses
Discount allowed
800
Rent and rates
4,960
Carriage on sales
3,000
Salaries
15,600
Net profit
QN .09. 15 marks = 1 mark each tick including heading and totals
A. Hamisi ans Sons ltd’s
Trial Balance as on 31st January, 2019
Date Details
DR
CR
Cash
6,300
Sales
48,000
Bank
9,000
van
75,000
premises
125,000
capital
250,000
Purchases
62,000
H. James: Debtor
4,100
Returns outwards
8,400
T. Chama – A Creditor
12,700
Office equipment
31,100
Returns inwards
6,600
319,100 319,100
139
120,000
(75,000)
45,000
260
45,260
(24,360)
20,900
Answers: Series No. 2
SECTION A 15 MARKS
QUESTION ONE (10 MARKS)
I
D
II
C
III
B
IV
A
V
C
IV
G
V
A
VI
A
VII
D
VIII
B
IX
D
X
A
.
QUESTION TWO (5MARKS)
I
C
II
E
III
H
SECTION B 50 MARKS
QUESTION THREE ( 10 MARKS)
ACCOUNT TO BE DEBITED
I
Cash account
II
L.Lihimba Account
III
Purchases Account
IV
Cash Account
V
Cash Account
VI
Drawing Account
VII Commission Account
VIII Furniture Account
ACCOUNT TO BE CREDITED
Capital account
Bank Account
M. Wamiliki Account
Chihamoto Account
Rent Account
Cash Account
Bank Account
Ntile Account
QUESTION FOUR
i.
ii.
iii.
iv.
v.
Error of omission
 Results when transaction is complete removed from books of account
Original entry error
 Occurred when the original figure is incorrect, yet double entry is still using the
incorrect figure
Error of commission
 Occurred when correct amount is entered but in wrong person account
Error of principle
 Occurred when item with correct amount recorded in wrong class of account
Under casting error
 Occurred when the amount is underlined and is recorded in one book
140
QUESTION FIVE
(10 MARKS)
PURCHASES JOURNAL
QUESTION SIX (10 MARKS)
OBJECTIVE OF STUDYING BOOKKEEPING





Determination of amount of profit and loss
Fair tax assessments
Reliable financial position of business
Knowledge of credit dealings
Business control
SECTION C 45 MARSK
QUESTION SEVEN (15)
DATE
DETAILS
5/01/2016
BAGAMOYO TRADER
80 bags of salt @ 5,000
40 bags of sugar @ 600
INVOICE
DATAILS
80 × 5,000 =
400,000
40 × 6,000 =
240,000
MASAMA WHOLESALER
10/01/2016 20 boxes of books @ 4,000
10 pairs of shoes @ 3,000
KOKOTO LTD
15/01/2016 30 bags of sand @ 5,500
20 × 4,000 = 80,000
10 × 3,000 = 30,000
30 × 5,500 =
165,000
31/01/2016 Transfer to purchases Account
TOTAL
640,000
110,000
165,000
9,150,000
141
SALVATORY ENTERPRISES
DR
DATE
CASH BOOK
DETAI
LS
CR
CASH
BANK DATE
DETAIL
01/6/2021
02/6/2021
11/6/2021
16/6/2021
28/6/2021
DISC
OUNT
ALLO
WED
Balance Samatta 300
Bank
Alikiba 700
Chama 200
2900
10000
3800
65400
2700
27300
-
Morrison
Cash
Insurance
Bocco
Balance
01/7/2021
1200
Balance
-
42800
33600
95400
3300
8/6/2021
11/6/2021
25/6/2021
29/6/2021
30/6/2021
DISC CASH
OUNT
RECE
IV
500
9200
1100
33600
BANK
1600
95400
42800
9500
10000
42900
3300
QUESTION EIGHT (15 MARKS)
JOHN’S
INCOME STATEMENT FOR THE YEAR ENDEDED 31 DECEMBER 2019
SHS
Sales
Less Return Inward
Net sales
Less: cost of Goods sold
Opening stock
Add Net purchases:
Purchases
Carriage inward
Less: Return outwards
Cost of goods available for sales
Less: Closing stock
Gross profit
Less: Total expenses
Carriage outward
Stationary
Insurance
Electricity
Rent
Fumigation
Water bill
Net profit
SHS
SHS
225,000
( 15,000)
210,000
15,000
85,000
5,200
90,000
(25,000)
65,200
80,200
(32,000)
2,000
7,000
3,500
2,500
4,000
3,500
2,500
QUESTION NINE
142
58,200
151,800
(2,500)
126,800
ABC TRADERS
TRIAL BALANCE AS AT 30 JUNE 2018
S/N
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
NAMES OF ACCOUNT
Stocks at January 2018
Purchases
Sales
Motor expenses
Salaries
Rent and Rates
Insurance
General expenses
Premises
Motor vehicles
Debtors
Creditors
Cash at bank
Cash in hand
Drawings
Capital
DR
3,249
11,380
CR
18,462
520
150
670
111
105
1,500
1,200
1,950
1,538
1,654
2,040
895
25,424
Answers: Series No. 3
SECTIONA (20 Marks)
143
5,424
25,424
1.
NO.
i
ANSW
B
@1 Mark = 10
ii
B
iii
A
iv
D
v
A
vi
D
vii
B
viii
C
iv
A
v
B
2.
GROUP A
i
GROUP B
E
@1 Mark = 05
ii
F
iii
C
iv
B
v
D
SECTION B (40 Marks)
3. FIVE (5) REASONS FOR THE DISAGREEMENT BETWEEN CASH BOOK AND BANK
STATEMENT
(i) Standing order
(ii) Unpresented cheques
(iii)Uncredited cheques
(iv) Bank charges
(v) Dividend
@ 2 marks = 10 (1 for point and another 1 for brief explanation)
(vi) Direct remittances
(vii) Dishonoured cheques
(viii) Book – keeping errors
4. FIVE (5) CHALLENGES FACING GOVERNMENT ACCOUNTING IN TANZANIA
(i). Little computer skills by employees
(ii).Lack of competent personnel
(iii). Frequent up date of standards.
(iv). Low legal enforcement
(v). Limited scope of internal control.
@ 2 marks = 10 (1 for point and another 1 for brief explanation)
5. ACCOUNT TO BE DEBITED AND ACCOUNT TO BE CREDITED
S/N
I
Ii
Iii
Iv
V
ACCOUNT TO BE DEBITED
Cash a/c
Rent a/c
KC COY a/c
Cash a/c
Insurance a/c
@1 Mark=10
6.
144
ACCOUNT TO BE CREDITED
Bank a/c
Bank a/c
Sales a/c
DUBAI COY a/c
Cash a/c
S/N
(vii).
(viii).
ASSETS
Increase of assets for cash
Decrease of assets for Bank
(ix).
Increase of assets for stock
(x).
 Increase of asset for Bank
 Decrease of asset for
Debtors
 Increase of asset for cash
 Decrease of asset for stock
 Increase of asset for stock
 Decrease of asset for cash
(xi).
(xii).
CAPITAL
LIABILITIES
Increase of capital
Decrease of liabilities
creditor
Increase of liabilities
creditors
for
for
@ 1 Mark=10
SECTION C (45 Marks)
7.
(i)
PURCHASES
DAY
DATE
DETAILS
MWAGOMBO
100 bags of Rice @ 550
50 bags of sugar @ 750
5/8/2020
DONS AND SONS LTD
10 boxes of cooking fat @ 320
12 pairs of sandals @ 150
10/8/2020
SHILABELA TRADERS
20 pairs of bed sheets @ 170
50 shirts @ 350
15/8/2020
DONS AND SONS LTD
2 cartons malaika soap@ 500
To purchases account DR
F
BOOK
INVOICE
DETAILS
INVOICE
TOTAL
100 × 550 = 55,000
50 × 750 = 37,500
92,500
10 × 320 = 3,200
12 × 150 = 1,800
5,000
20 × 170 = 3,400
50 × 350 = 17,500
20,900
1/8/2020
2 × 500 = 1000
GL
(ii) Supplies’ personal account
DR
MWAGOMBO ACCOUNT
Purchases
DR
DR
(iii)
DR
DONS
AND SONS LTD
Purchases
CR
92,500
ACCOUNT
6,000
SHILABELA TRADERS ACCOUNT
Purchases
20,900
PURCHASES
145
ACCOUNT
1000
119,400
CR
CR
CR
Sundry creditors
119,400
20 Ticks @ 0.75 Mark = 15
8.
THREE COLUMN CASH
DATE
PARTICULARS
1/1/2019
1/1/2019
4/1/2013
8/1/2019
31/1/2019
31/1/2019
Balance
Bank
Pande
Banda
Sales
Balance
F
DISC
b/d
C
200
100
Balance
b/d
DATE
PARTICULARS
F
4000
1/1/2019
2/1/2019
6/1/2019
15/1/2019
20/1/2019
24/1/2019
31/1/2019
Cash
Rent
Peter
Purchases
General exp
Drawings
Balance
C
1/2/2019
Balance
b/d
1900
14000
3480
1300
1200
BOOK
BANK
500
800
c/d
300
1/2/2013
CASH
DISC
CASH
500
2400
980
19000
20
100
500
c/d
23380
20
1200
1300
20 Ticks @ 0.75 mark = 15
9.
INCOME
STATEMENT
FOR THE YEAR ENDED 31ST DEC. 2018
Sales………………………………………………………..620,000
Less Return on sales……………………..………………… 12,000
Net sales………………………………………………………………………….608,000
Less COGS:
Opening stock………………………………………….. 70,000
Purchases…………………….350,000
Add: Carriage on purchases…..15,000
365,000
Less Return on purchases
5,000
360,000
COGAS……………………………………………………430,000
Less Closing stock………………………………………… 50,000
380,000
Gross profit……………………………………………………………………….. 228,000
Add Commission received……………………………………………………..…… 10,000
Total incomes…………………………………………………………………….. 238,000
Less: EXPENSES:
Carriage on sales……………………………………………8,000
Salaries and wages…………………………………………11,000
Electricity ………………………………………………..… 7,000
Discount allowed……………………………………………4,000
Rent………………………………………………………….3,000
General expenses……………………...………………….. 6,000
39,000
Net profit…………………………………………………………………………….. 199,000
20 Ticks @ 0.75 Mark = 15
Answers: Series No. 4
1. 1 Mark @ = 10 Marks.
i
ii
iii
iv
v
146
vi
vii
BANK
viii
ix
x
23380
3480
B
C
A
2. 1 Mark @ = 5 Marks.
COLUMN A
COLUMN B
A
i
C
C
ii
F
C
iii
E
B
iv
A
D
C
v
G
3. (a) 1 Mark @ = 5 Marks.
i)
Un-presented cheque.
ii)
Uncredited cheque.
iii)
Dividend.
iv)
Standing order.
v)
Trader’s credit/ credit transfer.
vi)
Bank charges.
vii)
Direct debit and direct credit.
viii) Bank giro credit.
(b) 1 Mark @ = 5 Marks.
i) Invoice.
ii) Receipt.
iii) Pay in slip.
iv) Payment voucher.
v) Credit note.
vi) Debit note.
4. 0.5 @ = 10 Marks.
Account to be debited
Bank Account
Purchases Account
Bank Account
Cash Account
Makame Account
Account to be credited.
Kamara Account
Cash Account
Cash Account
Bank Account
Return outward Account
5. 1 Mark @ = 10 Marks.
147
B
SALES DAY BOOK
DATE
May-01
May-12
May-25
DETAILS
FOL
INVOICE INVOICE
DETAILS TOTAL
HIZZAH
20 exercise books @ Tshs 500
20 boxes of pensil @ Tshs 100
10,000
2,000
12,000
HIBBA TRAINING CENTER
15 atlaces @ Tshs. 1,200
30 graph papers @ Tshs 50
18,000
1,500
19,500
KORUSHUSHO
sales
sales Account
9,000
G.L
9,000
40,500
6. 0.5 Mark @ = 10 Marks.
REC
FOL DATE
DETAILS
PETTY CASH BOOK.
V TOTAL PAYMENT ANALYSIS
NO PAY POST TRAV SUND LED
Jan
40,000
1
2
2
3
5
5
Cash
Stamps
Sugar
Daladala
Juma
Stationary
c/d
Balance
40,000
5,500 b/d
Balance
1 4,000 4,000
2 8,000
8,000
3 4,500
4,500
4 10,000
10,000
5 8,000
8,000
34,500 4,000 4,500 16,000 10,000
5,500
40,000
7. 0.75 Mark @ = 15 Marks.
148
STATEMENT OF FINANCIAL POSISTION AS AT 31/12/2019
DESCRIPTIONS
TZS
TZS
TZS
FIXED ASSETS
Machinery
130,000
Motor van
40,000
Furniture
25,000
Premises
53,000
Total fixed assets
248,000
CURRENT ASSETS
Closing stocks
Debtors
Cash at Bank
Cash in hand
Total current assets
CURRENT LIABILITIES
Creditors
Bank overdraft
Total current liabilities
Working capital
Capital employed
17,000
15,000
30,000
20,000
82,000
20,000
40,000
-60,000
22,000
270,000
financed by;
Capital
Add: Net profit
140,000
60,000
200,000
50,000
150,000
Less: Drawings
LONG TERM LIABILITIES
Loan from NBC
Capital employed
120,000
270,000
149
8. 1 Mark @ = 15 Marks
DAT DETAILS
Balance
Dividend
CASH ACCOUNT
FOL AMOUNTDAT DETAILS
25,370
Bank charges
850
Standing order
Balance
26,190
FOLAMOUNT
240
460
c/d
25,490
26,190
BANK RECONCILIATION STATEMENT AS AT 31/12/2019
DESCRIPTION
TSHS
TSHS
Balance as per adjusted cash book
25,490
Add: Unpresented cheque
12,340
37,830
Less: uncredited cheque
12,160
Balance as per bank statement
25,670
9. 0.625 Mark @ = 5 Marks.
DAT DETAILS
Return outward
Debtor
Debtor
CASH ACCOUNT
FOL AMOUNT DAT DETAILS
122,040
Balance
300,000
Sales
88,000
Purchases
510,640
0.5 Marks @ = 10 Marks.
GENERAL JOURNAL
DESCRIPTION
DEBIT DEBIT
Sales Account
30,000
Suspense Account
30,000
Suspense Account
122,640
Return outward Account
122,640
Suspense Account
300,000
Debtors
300,000
Purchases Account
4,640
Suspense Account
4,640
Suspense Account
44,000
Debtors Account
44,000
150
FOL AMOUNT
b/d
476,000
30,000
4,640
510,640
Answers: Series No. 5
Section a (15 Marks)
Qn1
i
B
ii
A
iii
D
iv
A
v
vi
vii
B
A
D
Each 1 mark total 10 marks
viii
B
ix
B
x
A
QN 2.
List A
List B
i
D
ii
iii
iv
G
E
H
Each 1 mark total 05 marks
v
F
Qn 3.
a
S/N TRANSACTIONS
i
ii
iii
iv
v
ACCOUNT TO BE
DEBITED
Cash withdraw from bank for business use CASH A/C
Payment of rent by cheque
RENT A/C
Sales of goods to KAMBONA
KAMBONA A/C
Cash received from SECHAMBO
CASH A/C
Payment of insurance in cash
INSUARANCE A/C
Each tick 0.5 mark total 05 marks
ACCOUNT TO BE
CREDITED
BANK A/C
BANK A/C
SALES A/C
SECHAMBO A/C
CASH A/C
b.
s/n
i
ii
iii
iv
v
Name of acconts
Classification
Building
Real a/c
Advertising
Nominal a/c
Paschal
Personal a/c
Furniture
Real a/c
RM Kawawa secondary school
Personal a/c
Each tick 01-mark total 05 marks
4. objectives of book-keeping
i.
To ascertain/determine the amount of profit or loss arising in the course of
business.
If the business man/woman keep records by all means he/ she should know whether
they run business into profit or losses.
ii.
Knowledge of
Credit dealing.
To know the amount of debtors and creditors and (customers and suppliers
respectively) A business Man/ Woman obtained the knowledge of Credit dealing.
iii.
Business control
A business man / woman can be able to control his /her business as required
151
by theprinciple, because he /she would be able to follow the proper records.
iv.
Fair tax assessment
The income tax department requires proper records in order to determine a fair
[reasonable] tax charge
v.
To determine the financial position of the business
In order to know the value of property and the amount of capital and capital efficiency,
the business man/woman need to keep the record of book keeping, the owned and their
capital increase or decrease.
Each point 2 marks total 10 marks
5.
i.
ii.
iii.
iv.
v.
vi.
vii.
COMPENSATING ERRORS
These are errors which cancel each other one credit side and another debit side overcasted or under-cast by the same amount.
ERRORS OF COMPLETE REVERSAL OF ENTRY
These are errors where by the transactions are completely reversed i.e. the account to be
debited is credited and the account to be credited is debited
ERRORS OF COMMISSION
These are errors that occur when a transaction is posted to the wrong personal account of
the same class.
ERRORS OF OMISSION
These are errors that occur when transactions are completely omitted from the book of
accounts.
ERROR OF ORIGINAL ENTRY
These are errors that occur when double entry enter in correct account but incorrect
figure.
ERROR OF PRINCIPLE
These are errors that occur when a transaction is posted to the wrong class of account.
Example;- A purchase of machine Tshs 200,000 had been posted to the purchases
account.
ERROR OF TRANSPOSITION
These are errors that occur when transaction is posted to the right a/c but the wrong
sequence of the individual characters within a number(amount) are entered. Example
istead of entering 59600 is entered 56900.
Any five among them, Each point 2 marks total 10 marks
152
6. BANK RECONCILIATION STATEMENT AS AT 31ST DECEMBER 2021
Balance as per cash book
64,000√
Add: unpresented cheque
7,500√
Dividends
8,200√
15,700√
79,500√
Less: uncredited cheque
9,500 √
Bank charges
230 √
Standing order
500 √
10,230 √
Balance as per bank statement
69,470 √
Each tick (√) 1 mark total 10 marks
7.
DATE
1/8/2020
5/8/2020
10/8/2020
15/8/2020
Section C (45 MARKS)
PURSHASES JOURNAL
DETAILS
F
INVOICE
DETAILS
RTC LIWALE
Pl
100 bags of rice @ 550
100 x 550 =
50 bags of sugar @ 750
55,000√
WAMO STORES
PL
50 x 750 =
10 boxes of cooking fat@ 320
37,500√
12 pairs of sandals @ 150
NALULEO TRADERS
PL
10 x 320 =
20 pairs of bedsheets @ 170
3,200√
50 shirts @ 350
12 x 150 =
WAMO STORES
PL
1,800√
2 cartoon Malaika soap @
500
GL
20 x 170 =
Transfer to purchases a/c (dr)
3,400√
50 x 350 =
17,500√
INVOICE
TOTAL
92,500√
5,000√
20,900√
1,000√
119,400
2 x 500 = 1,000
DETAILS
DETAILS
PURCHASES LEDGER
RTC LIWALE ACCOUNT
TZS
1 Aug
DETAILS
Purchases
TZS
92,500 √
WAMO STORES ACCOUNT
TZS
DETAILS
5 Aug Purchases
15 Aug Purchases
TZS
5,000 √
1,000 √
153
NALULEO TRADES ACCOUNT
DETAILS
TZS
DETAILS
5 Jan
Purchases
GENERAL LEDGER
PURCHASES ACCOUNT
DETAILS
TZS
Purchases journal
119,400 √
DETAILS
TZS
20,900 √
TZS
15 ticks (√) Each tick (√) 1 mark total 15 marks
8.
Date Details
1/1
1/1
4/1
Balance
Bank
Kisinda
8/1
Feisal
Salum
THREE COLUMN CASH BOOK
F
Disc
Cash Bank Date Details
F
Allow.
b/d
4000√ 1/1
Cash
c
c
500√
6/1
Mayele
200√
800√
20/1 General
Expenses
100√
1900√ 24/1 Drawing
31/1
300√
1/2
Balance
b/d
Balance
c/d
1300 5900
1200√ 3920√
Disc Cash Bank
Rec.
500√
20√
980√
100√
500√
1200
20 √ 1300
3920
5900
15 ticks (√) Each tick (√) 1 mark total 15 marks
9.
INCOME STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2018.
Sales…………………………………………………………………………………………620,00
0√
Less: Return on Sales………………………………………………………………………12,000√
Net Sales………………………………………………………………………….608,000
Less: cost of goods sold (COGS)
Oppening stock……………………………………….….70,000√
Add: purchases……………………….350,000√
Add: carriage on purchases……..15,000√
365,000
Less: return on purchases………….5,000√
360,000
Cost of goods available sales (COGAS)……………………….430,000
Less: Closing Stosk………………………………………50,000√
380,000
GROSS
PROFIT……………………………………………………………………………228,000√
Add: Commission Received……………………………………………………………….
10,000√
238,000
LESS: EXPENSES:
Carriage on sales………………………………..8,000√
154
Salaries and wages……………………………11,000√
Electricity…………………………………………7,000√
Discount allowed………………………………...4,000√
General expenses……………………………….6,000√
NET PROFIT
15 ticks (√) Each tick (√) 1 mark total 15 marks
155
36,000
202,000√
Answers: Series No. 6
SECTION A (30 MARKS)
1. MULTIPLE CHOICES
QNN
I
II
III
IV
V
VI
ANSW C
D
2. MATCHING ITEMS
QNS
I
ANSW
C
D
A
B
B
VII
VIII
IX
X
A
D
C
B
II
III
IV
V
K
I
L
J
3. REASONS FOR DIFFERENCES IN BANK STATEMENT AND CASH BOOK
i.
Bank charges
ii.
Standing orders
iii.
Credit transfer
iv.
Unpresented cheques
v.
Uncredited cheques
vi.
Plus any other reasons but only five of them are needed.
4. ACCOUNTING EQUATION COMPUTATION
i.
1,403,000
ii.
11,193,700
iii.
2,706,300
iv.
7,750,200
v.
21,000,000
5. DEFINITION OF TERMS
i.
Reimbursement is the situation where by the petty cashier is being refunded the
amount spent during the period either at the end or at the start of the next month.
ii.
Trial balance is the statement which show the list of debit and credit balances
extracted from the ledgers.
iii.
Bank reconciliation statement is the statement which is used to reconcile the
differences between the cash book and bank statement.
iv.
Petty cash book is the type of cash book which is used to record the small
payments and is controlled by a person called petty cashier.
v.
Sales return day book is the type of subsidiary book which is used to record all the
goods return by our customers to us.
6. CLASSIFICATION OF ACCOUNT
i.
Real account
vii.
Nominal account
ii.
Personal account
viii. Real account
iii.
Nominal account
ix.
Nominal account
x.
Personal account
iv.
Real account
v.
Real account
vi.
Nominal account
156
SECTION C (45MARKS)
7.
Receipts
TZS
40,000
F
1/12
2/12
4/12
7/12
10/12
18/12
25/12
27/12
28/12
39100
c/d
79100
40,000
Date
29/12
31/12
B/d 1/1
8.
BABAYOYO, PETTY CASH BOOK
Details
Total
Stationary
TZS
TZS
Cash
Sweeping charges 5000
Coffee and sugar 6200
Envelopes
11200
Carriage
7500
Postage stamp
2500
Stationary
4300
4300
Stamp duty
700
Telegram
1700
39,100
4300
Cash
Balance
40,000
79100
Balance
Postage
TZS
5000
6200
11200
7500
2500
700
1700
16100
18700
KWAVAVA
TWO COLUMN CASH BOOK
DATE
DETAILS
1/1/17
9/2/17
DATE
DETAILS
Capital
CASH BANK
TZS
TZS
300000 150000
2/2/17
Purchases
CASH
TZS
23000
Vivian
14000
3/2/17
Rent
10000
105000
19/2/17 Rates
12/2/17 Sales
F
F
50000
22/2/17 Furniture
55500
27/2/17 Cash
30000
27/2/17 Bank
30000
28/2/17 Mavere
75000
28/2/17 Bank
45000
28/2/17 Cash
28/2/17 Balance
464000 230,000
Balance
b/d 270500 183000
157
BANK
TZS
2000
26/2/17 Sales
1/3/17
Sundry
exp TZS
45000
c/d 270500 183,000
464000 230,000
9.
LILIAN MOORE
INCOME STATEMENT AS AT 31ST DECEMBER 2014
Sales
Less, return on sales
Less, cost of sales
Opening inventory
Add, purchases
Add carriage inward
Add, wages
TZS
620,000
12,000
TZS
608,000
700,00
350,000
3500
346500
8,000
354500
424500
225500
Gross profit
Add, other income:
Commission received
Discount received
Total income
Salaries
Electricity
Discount received
General expenses
Net income (profit)
10000
8500
11000
7000
4000
6000
158
18500
244000
28,000
216,000
Answers: Series No. 7
1. (1 mark each item toal 10 marks)
I
ii
iii
iv
v
vi
vii
viii
B
A
D
A
D
B
B B
2. (1 mark each item toal 5 marks)
i
ii
iii
iv
v
C
F
E
G
D
3. Objectives of book keeping
(i)
Determination of profit or Loss
(ii)
Knowledge of credit dealings
(iii)
Business control
(iv)
Reliable financial position
(v)
Fair tax assessment
(Well explained @ point 2marks total 10 Marks)
4. Reasons for returning goods to the supplier
(i)
Expired goods
(ii)
Poor quality goods
(iii)
Wrong colour
(iv)
Wrong brand
(v)
Wrong quantity
(vi)
Damage in transit
(vii) Difficult to use
(viii) Wrong size
(Any five points briefly explained @ 2x5 total 10 Marks)
5. Errors thast can be revealed by the Trial balance
(i)
Error of partial omission
(ii)
Error of casting ( adding up)
(iii)
Error of carrying forward
(iv)
Error of posting to correct account with the wrong amount
(v)
Error of posting in rhe wrong side of the correct account
(vi)
Double posting in the same account
(Any five points @2 x5= 10 Marks with short explanations)
6. Users of financial information/ statements
(i)
Lenders or financial institutions like banks
(ii)
Tax inspectors or government
(iii)
Managers or management
(iv)
Employees
(v)
Auditors i.e internal and external
159
ix
C
x
C
(vi)
(vii)
(viii)
(ix)
Suppliers
Prospective Customers
Owners
Prospective investors
(Any five points @2marks total 10 Marks)
MZAMZA’S SHOPPING CENTRE
7.
DR
CASH ACC OUNT
DATE
1.4.2018
5.4.2018
7.4.2018
15.4.2018
30.4.2018
DETAILS
Capital’
Sales
Pendo
P.Mkota
Bank
1.5.2018
Balance
F
AMOUNT
200,000√
38,000√
68,000√
192,000√
‘C’ 40,000√
538,000√
b/d 224,000√
DR
DATE
2.4.2018
9.4.2018
16.4.2018
30.4.2018
30.4.2018
CR
DETAILS
Rent
Kitambi
Bank
Wages
Balance
F
AMOUNT
46,000√
184,000√
’C’ 20,000√
64,000√
c/d 224,000√
538,000√
BANK ACC0UNT
DATE
DETAILS F
CR
AMOUNT DATE
3.4.2018
11.4.2018
16.4.2018
22.4.2018
Adolf
Sales
Cash
Sales
400,000√
302,000√
‘C’ 20,000√
24,400√
1.5.2018
Balance
746,400√
b/d 419,400√
4.4.2018
19.4.2018
26.4.2018
30.4.2018
30.4.2018
DETAILS
AMOUNT
Nyanza
172,000√
Kapiga
100,000√
Motor expenses
15,000√
Cash
‘C’ 40,000√
Balance
b/d 419.400√
746,400√
(0.6 Marks @ 25 Total 15 Marks)
160
F
8.
DR
LUANDA PROVISION STORE
THREE COLUMN CASH BOOK
DAT DEDTAIL F
E
S
DISC
CASH
BANK
DA
TE
DETAIL
29,000
654,000
3.5.
Makori I.
8.5
Cash
CR
F
DIS
CASH
BANK
2017
1.5.
Balance
2.5.
K. Ochola
b/d 3000
8.5.
Bank
C
11.5
S.Ayako
7000
20.5
J. Mango
1000
28.5
Sales
29.5
Cash
1.6
Balance
95,000
117,000
100000
273,000
25/
Fur & Fit
250000
29
Bank
250,000
418000
1294000
21000
431,000
C
100000
15/5 Wages
39,000
C
11000
5000
90000
250000
C
250000
T.Oloo
3000
30.
Kairo Di
22000
30
Balance c/d
30000
b/d
( 0.6 @ Tick x25= 15 Marks)
161
57,000
418000
21,000
431000
418000
1294000
9.
WORKING
DR
DATE
UNADJUSTED CASH BOOK
DETAIL
F
CR
AMOUNT DATE
DETAIL
F
AMOUNT
10.12.2012 Cheque
2,200
1.12.2012
Balance
b/d 4,000
31.12.2012 Cheque
600
5.12,2012
Kulwa &Dotto
31.12.2012 Mathias
1,200
15.12.2012 Morrison
2,500
31.12.2012 Balance
c/d 7,000
31.12.2012 Marwa
3,500
1,000
11,000
11,000
Balance
b/d 7,000
(3 Marks)
DR
DATE
ADJUSTED CASH BOOK
DETAILS
AMOUNT DATE
DETAILS
F
Dividend
1,500√
Balance
b/d 7,000√
Credit Transfer
3,000√
Bank charges
1300√
Standing order
500√
Balance
F
CR
c/d 4300√
8,800
AMOUNT
8,800
Balance
b/d 4,300√
BANK RECONCILIATION STATEMENT AS AT 31.12.2012
162
Balance as per adjusted cash book
4,300√
Add; Uncredited cheques: Mathias
1,200√
5,500√
Less; Unpresented cheques: Marwa
3,500√
Balance as per bank statement O/D
2,000√
(1 mark @tick 12 =12 Marks) Total 15 marks
Answers: Series No. 8
1. 1 @ = 10 Marks
163
i
A
ii
C
Iii
E
iv
A
v
C
vi
B
vii
B
viii
C
ix
B
x
E
xi
D
xii
E
xiii
E
xiv
C
xv
A
2. 1 @ = 5 Marks.
i
Ii
D
F
1MARK @1=5
iii
iv
v
B
C
E
SECTION B
3. 2 @ = 10 Marks.
i. CREDIT TRANSACTIONS; is the transactions where by the payment made later on
future,
ii. BUSINESS TRANSACTON; is the movement of money or money’s worth from one
person to another.
iii. STATEMENT OF FINANCIAL POSITION; is the statement which show the list of assets,
liabilities and capital
iv. SUBSIDIARY BOOKS; Are the books used to record transactions before posting them to
the ledger.
v. TRIAL BALANCE; is the statement which show the list of balances extracted from the
ledger
4. ADVANTES OF BOOKS OF PRME ENTRIES
I.
They are used for future references
II.
They minimize errors
III.
They prevent ledger from being bulky
IV.
Used for investigation of individual account.
V.
Provide the ledger account.
1MARK@2=10
5. (a).i. DR PURCHASES ACCOUNT
CR CASH ACCOUNT
II.DR TRANSPORT CHARGES ACCOUNT
CR CASH ACCOUNT
III.DR CASH ACCOUNT
CR SALES ACCOUNT
IV. DR WAGES ACCOUNT
CR CASH ACCOUNT
V. DR FURNITURE ACCOUNT
CR CASH ACCOUNT
1MARK@O.5=5
164
(b) i.REAL ACCOUNT
II.PERSONAL ACCOUNT
III.NORMINAL ACCOUNT
IV.REAL ACCOUNT
V.NORMINAL ACCOUNT
1MARK@1=5
6. 10 Marks.
I.
Sales day book
II.
Purchases day book
III.
Sales return day book
IV.
Purchases return day book’=
V. Cash book
VI.
Journal proper.
1MARK @1=6
(b)
I.
II.
III.
IV.
Purchases invoice
Credit note
Debit note
receipts
1MARK@1=4
SECTION C
7.
BANK RECONCILATION STATEMENT AS AT 31 MARCH 1998
Balance as per cash book
Add uncredited cheque hamis
52,800
1600
Standing order
490
Bank charges
280
2,370
55,170
Less unpresented cheque
Traders credit
4900
570
5470
Balance as per bank statement
49,700
1MARK@0.7=15
165
8.
PRINCE WHOLESALER SALES DAY BOOK
DATE
PARTICULAR
APR 1
JUNIOR
10 dozen of vitenge@8000
25 dozen ofkhanga@10,000
MERCY
100 pairs of shoes@ 2000
200 pars boots@ 3000
BARAKA
100 dozens of books@3000
200 reams paper @1500
NEEMA
Sold goods worth shs 5,000
STAR BOOK
200 dictionaries@2500
800 fictions book@500
Transfer to the
APR 5
AP12
AP 15
AP22
AP 30
FOLIO INVOICE
DETAIL
INVOICE
TOTA
SL1
SL2
80,000
250,000
330,000
SL3
SL4
200,000
500,000
700,000
SL5
SL6
300,000
300,000
600,000
SL7
5,000
5,000
SL8
SL9
GL
500,000
400,000
900,000
2,535,000
b) SALES LEDGER AND GENERAL LEDGER
DR
MONICA’S TWO COLUMN CASH BOOK
166
CR
date
particular
2021
¼
5/4
10/4
14/4
25/4
27/4
28/4
Capital
Sales
Cash
Ipyana
Sales
Bank
sales
1/5
balance
foli
o
Cah
000
200
300
C
C
b/d
50
450
100
150
1,250
700
Bank
000
150
200
250
40
100
740
425
date
Particular
2021
3/4
10/4
20/4
22/4
26/4
27/4
30/4
Purchases
Bank
Wages
Purchases
Insurance
Cash
balance
167
folio
c/d
Cash
000
Bank
000
100
250
50
150
90
700
1,250
100
25
100
425
740
Answers: Series No. 9
1. 1 Mark @ = 10 Marks.
LIST A
I
II
LIST B
A
B
2. 1 Marks @ = 5 Marks.
III
D
IV
G
V
F
SECTION B(40 MARKS)
I
II
III
IV
V
VI
VII
VIII
IX
X
A
D
C
D
B
B
B
B
C
C
3. 1 Mark @ = 10 Marks.
i.
Tsh 33,200 (Capital =asset - liabilities)
ii.
Tsh 28,400 (capital)
iii. Tsh 32,000 (Liabilities = Assets – capital)
iv.
Tsh 3,200 (liability )
v.
Tsh 50,400 (Asset = Liabilities + Capital)
vi.
Tsh 140,800 (Asset)
vii.
Tsh 76,200 (Capital = Asset – liabilities)
viii. Tsh 25800 (Asset = capital + liabilities)
ix. Tsh 15,200 (Liabilities = Assets – capital)
x. Tsh 52,000 (Liabilities = Assets – capital)
4. 2 Marks @ = 10 Marks.
i.
Through taxes (both indirect and direct taxes)
ii.
Issuing of Licenses to business firms.
iii. Through internal borrowing like sale of treasury bills etc
iv.
Fines and penalties
v.
Dividends from government investments and profits on disposal of government
assets.
5. 2.5 Marks @ = 10 Marks
a) A vote is an item / unit of expenditure to which money has been appropriated
whereas
Ambit of vote is the maximum amount of money an accounting officer is required
to spend on a particular vote.
b) Debit note is a document sent by the seller to the buyer to correct an undercharge
from the original invoice. Whereas
A credit note is a document sent by the seller to the buyer to correct an overcharge
from the original invoice.
c) Appropriation act is an act of the national assemble to authorize he realize of funds
from the consolidated fund where as
Supplementary appropriation Act is an act to authorize issuing of more funds in
addition to the sum already appropriated in the principal appropriation act.
168
d) Returns out wards; these are amount goods returned by the business to the suppliers
whereas carriage out wards is the transport cost incurred (paid) by the business to
transport goods to the customer’s premises.
6.
DR.
DATE
DETAIL F
1/1/2000 Balance
2/1/2000 Sales
4/1/2000 Sales
5/1/2000 Shalom
7/1/2000 Capital
CASHBOOK.
CASH BANK DATE
b/d 100,000
10,000
DETAIL F
50,000
75,000
30,000
2/1/2000
3/1/2000
4/1/2000
Wages
Rent
Jayden
15,000
6/1/2000
Drawings
10,000
7.
Date
Dec
1st
Dec 4th
Dec 7th
Dec 31st
10,000
10,000
50,000
31/1/2000 Balance
1/2/2000 Balance
CR
CASH BANK
265,000
b/d 240,000
50,000
30,000.
c/d 240,000
265,000
30,000
50,000
Omega ltd’s
Sales journal For the month ending 31st December SJ01.
Particulars
Folio Invoice Invoice detail
Total.
no.
L1
Pearl
-4 bags of cement
4 x 20,000 = 80,000
-5 tins of paint
5 x 15,000 = 75,000
10 kgs of nails
= 50,000
205,000
L2
Shalom
-10 steel rods
10 x 10,000 =100000
-15 paint brushes
15 x 5,000 = 75,000
-4 rollers
= 10,000 185,000
L3
Britney
-10 tins of paint
10 x 15,000 =150000
-20 steel rods
20 x 10,000 =200000
-5 tins of paint
5 x 15,000 = 75,000 425,000
transfer to the sales account
GL1 815 000
Individual debtors’ accounts
Dr.
Dec1
Dr.
dec 4
sales SJ01
sales SJ01
Pearl account
205,000
Shalom account.
185,000
169
L1
L2
cr.
Cr.
Dr.
dec 7
Britney account
425,000
sales SJ01
General ledger
sales account.
Dec 31
Dr.
L3
cr
GL1
sundry debtors SJ01
Cr.
815,000
Victoria limited’s
Income statement for the period ending 31/12/2021.
8.
Sales
400,000
Less sales returns
17,000
Net sales
383,000
Less cost of sales
Opening stock
40,000
Purchases
150,000
Carriage in wards
7000
157,000
Purchases returns
20,000
cost of goods available for sale
137,000
177,000
less closing stock
50,000
Gross profit
127,000
256,000
Add other incomes
Discount
15,000
Gross income.
271,000
Less expenses.
Discounts
5,000
Carriage out wards
9,000
Salaries
100,000
Rent
80,000
Advertising
2,000
Travelling expenses
15,000
Net profit
211,000
60,000
170
9. dr
Adjusted cashbook for the month of march
cr
Balance b/d
53,000
Standing order(tanesco)
20,000
Dividends
10,000
Banking charges
17,000
Credit transfer
80,000
Balance c/d
111,000
Interest
5,000
148,000
Balance b/d
148,000
111,000
b.) bank reconciliation statement.
Balance as per bank statement
35,000
Additions.
Uncredited cheques:
Brenda
50,000
Immy
46,000
Rose
25,000
121,000
156,000
Subtractions.
Un presented cheques:
Elly
41,000
Roy
4,000
Balance as per adjusted cashbook.
45,000
111,000
171
Answers: Series No. 10
MARKING SCHEME
SECTION A (15 Marks)
1.
ITEMS
ANSWER
i
C
ii
B
iii
A
iv
v
vi
B
C
A
1√ @ item = 10 marks
Vii
D
viii
A
ix
D
x
A
2.
ITEMS
ANSWER
I
B
ii
iii
D
G
1√ @item = 05 marks
SECTION B (40 Marks)
3. Sources of government revenue;
i.
Taxes√
ii.
Licences and fees√
iii. Loans (borrowing)√
iv.
Grants and Aids√
v.
Fines and penalties√
vi.
Dividends from parastatals.
vii.
Revenue from public properties
5√ @ √ 2 marks = 10 marks (any five points)
4. Compute the missing figure
i.
Tzs. 14,030/=√
ii.
Tzs. 21,900/=√
iii. Tzs. 27,070/=√
iv.
Tzs. 43,500/=√
v.
Tzs. 51,500/=√
5√ @√ 2 marks = 10 marks
5. Identify type of error
i.
Error of principle.√
ii.
Error of commission.√
iii. Error of omission.√
iv.
Error of original entry.√
v.
Error of principle.√
5√ @ √ 2 marks = 10 marks
6. Account to be debited and account to be credited
i.
Dr. Machinery Account,√
Cr. Cash Account.√
ii.
Dr. Cash Account,√
Cr. Asha’s Account.√
iii. Dr. Rent Account,√
Cr. Bank Account.√
iv.
Dr. Cash Account,√
Cr. Bank Account.√
v.
Dr. Mr Madai Account,√
Cr. Cash Account.√
172
iv
A
V
F
10√ @ √ 1 mark = 10 marks.
SECTION C (45 Marks)
SAVUTU GENERAL SUPPLIES
7.
Receipt
150,000√
150,000√
6,00√
143,700√
Folio
C.B√
Date
Details
2020
½
Cash
½
Transport
½
Meals
½
Stationery
V.N
o
Total
payamen
t
Analysis Columns
Accom
1
2
3
18,000√
7,500√
1,000√
2/2
Accom
4
24,000√
2/2
2/2
2/2
3/2
3/2
Meals
Telephone
Transport
Meals
Accom
5
6
7
8
9
5,000√
3,000√
2,000√
7,500√
24,000√
3/2
Stationery
10
1,500√
3/2
4/2
Telephone
Stationery
11
12
4,200√
2,000√
4/2
4/2
4/2
Transport
Meals
Accom
13
14
15
2,500√
5,000√
13,000√
5/2
5/2
5/2
Meals
Transport
Telephone
Cash spent
16
17
18
2,500√
20,000√
1,000√
143,700√
6,300√
150,000√
c/d
5/2
Balance
b/d
6/2
7/2
Balance
Cash
PETTY CASH BOOK√
50√ @√ 0.3 mark = 15 marks
173
Meal
Telep
Trans
Stat
18,000√
7,500√
1,000
√
24,000
√
5,000√
3,000√
2,000√
7,500√
24,000
√
1,500
√
4,200√
2,000
√
2,500√
5,000√
13,000
√
2,500√
20,000√
61,000
√
1,000√
27,500 8,200√
√
42,500√
4,500
√
8.
DR
Date
2019
31/12
31/12
LEWIS STATIONERY
ADJUSTED CASH BOOK√
Details
Folio Amount
Balance
Credit transfer
b/d
1/1/20 Balance
b/d
183,000√
5,400√
188,500√
186,300√
Date Details
2019
31/12 Bank charges
31/12 Balance
Folio
c/d
CR
Amount
2,200√
186,300√
188,500√
LEWIS STATIONERY
BANK RECONCILIATION STATEMENT AS ON 31st DECEMBER, 2019.√
TZS
Balance as per adjusted cash book
186,300√
Add: unpresented cheque
G. Small
11,500√
197,800√
Less: Uncredited cheque
K. Wood
24,900√
M. Barret
17,800 √
42,700
Balance as per Bank Statement
155,100√
15√ @ √ 1 mark = 15 marks
9.
HILLARY PHILIPO
STATEMENT OF FINANCIAL POSITION AS AT 31st DECEMBER, 2018.
TZS
TZS
TZS
Non – current Assets
Motor van
70,000√
Furniture
40,000 √
110,000√
Current Assets
Stock
143,000√
Debtors
397,000√
Cash
3,000√
543,000√
Less current liabilities
Creditors
202,000√
Bank overdraft
145,000√
347,000√
Working capital
196,000√
Net Asset
306,000√
Financed by:
Capital
240,000√
Add: net profit
162,000√
402,000
Less: drawings
96,000√
306,000
15 √ @ √ 1 mark = 15 marks
174
Answers: Series No. 11
QN1.
i.
D
ii.
D
iii.
A
iv.
A
v.
A
vi.
C
vii.
A
viii.
B
ix.
B
x.
B
QN2.
i.
F
ii.
A
iii.
B
iv.
C
v.
D
QN3.
a) Controller and auditor general): Is a person appointed by the president of the United
Republic of Tanzania to be the watchdog of the public money. He makes sure that withdraws
from the consolidated fund are authorized by the parliament of the united republic by an
appropriate act or any other law.
b) Exchequer account is a government bank account which is operated and managed
by the Paymaster General and is kept at the central bank (Bank of Tanzania).
It deals with all government revenue deposited and all the money necessary to
meet approved expenditure are drawn.
c) Nugatory expenditure are payments made for which the government has received
no value. Such payment may be due to payment made in excess of approved rates
or with proper rates or without proper authority, services or goods paid twice
payments for the service not received.
d) Ambit of vote is the total amount approved by the parliament for the various
services as described in the parliament act in respect of vote during the
financial year.
e) Public money are all public revenues or any trust or other money held whether
temporarily or otherwise by an officer on his/her official capacity.
QN4.
a.
175
i)
ii)
iii)
iv)
v)
i)
ii)
iii)
iv)
v)
Customers
Suppliers
Government agency
Financial institutions
Employees
Unpresented cheques
Uncredited cheque
Credit transfer
Standing order
Dishonoured cheque
QN5.
S/N
B
C
D
E
F
Qn 6.
Account to be debited
Purchases account
Transport charges account
Amina account
Wages account
Furniture account
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
Account to be credited
Cash account
Cash account
Sales account
Bank account
Kidawa account
7,500
32,850
20,800
41,800
3,200
40,000
44,000
15,000
180,000
50,000
QN7.
DR
Date
Details
2020
01.01
02.01
02.01
04.01
Balance
Sales
Cash
Bank
F
THREE COLUMN CASH BOOK
Discount Cash
Bank Date Details
allowed
2020
1,000 3,000 02.01 Bank
2,000
03.01 Purchases
1,500 04.01 Cash
1,000
06.01 Rent
176
F
CR
Discount Cash
Bank
received
1,500
500
1,000
100
10.01
10.01
21.01
31.01
Khalid
Othman
Sales
Cash
30
20
1,200
50
01.02
270
180
Balance b/d
5,200
2,400
07.01
12.01
12.01
1,000 17.01
20.01
31.01
31.01
5,950
2,818
Wages
Nadia
8
Juma
10
Stationery
Taxes
Bank
Balance
c/d
18
200
192
240
400
800
1,000
2,400
5,200
2,818
5,950
Workings.
1. Khalid
Discount allowed
300 x 10% = 30
Amount to be received = 300 – 30 = 270.
2. Othman
Discount allowed
200 x 10% = 20
Amount to be received = 200 – 20 = 180
3. Nadia
Discount received
200 x 4% = 8
4. Juma
Discount received
250 x 4% = 10
DR
Date
Details
31.01.2020 Sundry
01.02.2020 debtors
Balance
DISCOUNT ALLOWED ACCOUNT
F
Amount
Date
Details
50
31.01.2020 Balance
b/d 50
DR
Date
Details
31.01.2020 Balance
DISCOUNT RECEIVED ACCOUNT
F
Amount Date
Details
c/d 18
31.01.2020 Sundry
01.02.2020 creditors
Balance
Qn 8.
KASANURA’S
177
CR
F
Amount
c/d 50
CR
F
Amount
18
b/d 18
INCOME STATEMENT FOR THE YEAR ENDED 31
Sales
Less:
ST
MAY, 2021
80,000
Cost of goods sold:
Opening stock
Add: Purchases
Less: Returns outwards
25,000
55,000
Cost of goods available for sale
Less: Closing stock
55,500
Gross profit
24,500
Less: Insurance
Rent
Wages and Salaries
General expenses
43,000
Net loss
4,500
50,500
75,500
20,000
2,500
12,000
18,000
10,500
18,500
KASANURA’S
STATEMENT OF FINANCIAL POSITION AS AT 31ST MARCH, 2021
NON-CURRENT ASSETS:
Lorry
15,000
Furniture
10,000
Total non-current assets
25,000
CURRENT ASSETS
Stock
20,000
Debtors
12,000
Cash at bank
20,600
52,600
Total assets
77,600
Less:
CURRENT LIABILITIES
Creditors
26,100
Capital employed
51,500
Financed by:
178
Capital
Less: Net loss
18,500
70,000
51,500
QN9.
JOURNAL ENTRIES
S/N
DETAILS
Purchases account
To Sharifa account
Being error of complete omission now is
corrected
Ray Account
To Lay Account
Being error of commission now is corrected
Office equipment Account
To Office expenses Account
Being error of principle now is corrected
Purchases Account
To Eva Account
Being error of original entry now is
corrected
Wages Account
To Sales Account
Being error of compensating now is
corrected
DEBIT
2,000
CREDIT
2,000
5,000
5,000
1,000
1,000
9,000
9,000
5,000
5,000
Answers: Series No. 12
1. (10 marks, 1@)
i.
C
ii.
D
iii.
B
iv.
D
v.
C
vi.
A
vii.
D
viii.
D
ix.
A
D
2. (5 marks, 1 @)
LIST A
i.
ii.
iii.
179
iv.
x.
v.
LIST B
E
C
A
B
3. (a) users of financial information (5 points, 5 marks 1@)
 Owner(s) of the business
 A prospective buyer
 Tax inspectors (Collectors)
 A prospective partner
 Investors
 Financial institutions
(b) Real, personal or nominal account (5 marks, 1 @)
s/n
Name of account
Classification of account
i.
Motor vehicle
Real account
ii.
Discount received
Nominal account
iii. Judith ally
Personal account
iv. Fixtures and fittings
Real account
v.
Nominal account
Sales
4. (a) Reasons for goods to be returned to the supplier ((5 marks, 5 point 1 @)
 Wrong type of goods
 Wrong color and size of goods
 Goods were faulty
 Goods were more that what was ordered
 Goods were expired
 Low quality of goods
(b) Internal Source of government account. (5 marks, 5 points 1 @)
 Taxes both indirect and direct taxes
 Licenses and fees
 Revenue from public property
 Fines and penalties
 Dividends from parastatals
 Interest received from investments
180
D
 Loans
5. (10 marks, 2 @)
(a) Book-keeping; is the art of recording business financial transaction, in a set of books in
terms of money or money’s worth
(b) Nugatory expenditure; these are payment made for which the government has received no
value in return.
(c) Credit note; is a document sent by the seller to the buyer to correct an overcharge.
(d) Closing stock. This is the value of goods remains unsold at the end of trading period. These
stocks are kept in the business to be sold in the next accounting period.
(e) Cash transaction. These are transaction involving sale or purchase of goods or services and
the payment for them is made instantly or promptly.
6.
(a) Reasons for studying bookkeeping (5 marks, 5 point 1 @)
 Determination of profit
 Knowledge of credit dealings
 Business control
 Fair tax assessment
 Reliable financial position
(b) Examples of transaction (5 marks, 5 point 1 @)
 Buying goods on cash or credit
 Selling goods on cash or credit
 Paying a creditor by cheque
 Owner receiving money from debtor
 Owner pays more capital in bank.
SECTION C
7. (15 marks)
Recei
pt
F
Date
Details
PETTY CASH BOOK
Vou Total Analysis colums
cher
no.
Posta
ge
181
Stationa
ry
Ledge
r
accou
nt
Travelling
expenses
2018
1,130 b/d 01.04
23,870 cb1 02.04
04.04
09.04
11.04
17.04
680
23.04
26.04
Balance
Cash
Stamps
Samwel
Bus fares
Envelops
Telephon
Petrol
30.04
Balance
Cash
2,410 b/d 01.05
22,590
01.05
CB
Balance
Cash
25,680
01
02
03
04
05
06
8,500
2,350
1,720
700
8,500
1,720
2,350
10,000
23270
2,410
25,680
700
10,000
8,500
700
11,720
GL2
GL3
GL4
2,350
1
8.
Income statement for the year ended 31st December 2019
Sales
69,470
Less; return inward
1,200
Net sales
68,270
Less: cost of goods sold
182
Opening stock,
6290
Add; purchases
44,280
Add; carriage inward
1,920
Less: return outward
980
Net purchases
45,220
Cost of goods available for sale
51,510
Less:
closing stock
7,360
Cost of goods sold
44,150
Gross profit
24,120
Add; Discount received
550
24,670
Less; expenses
Salaries
14,880
Rent
370
Insurance
850
Carriage outward
380
Advertising
1,210
Discount allowed
310
18,000
Net profit
6,670
9. (a) (8 marks)
GENERAL JOURNAL FOR MKUDE AS AT 31ST DEC 2015
Date
Details
f
Dr
Cash in hand
CB1
200,000
Cash at bank
CB2
800,000
2015
01.01
183
Cr
Furniture
GL1
500,000
Premises
CL1
200,000
Mwaisa
SL1
50,000
-
Mtumbadi
SL1
20,000
Creditors
- Mnyabi
PL1
30,000
PL2
10,000
GL1
1,730,000
Debtors
Madenge
Capital
Being opened entries for
1,770,000
1,770,000
for assets and liabilities as
tat date
(b) (7 marks)
Bank reconciliation statement as at 31st December 2021
Over draft as per bank statement
6,000
Add:
7,500
unpresented cheque
13,500
Less;
uncredited cheque
9,000
Bank charges
30
(9,030)
Overdraft as per cash book
4,470
Answers: Series No. 13
MARKING GUIDE SERIES NO 28/50
1.
I
C
II
B
III
C
IV
D
V
B
2.
184
VI
C
VII
B
VIII
D
IX
D
X
D
I
C
II
E
III
H
IV
G
V
A
3. (I) The entry where its double entry is completed within a cash book. 2marks
(ii) Is the list of ledgers and their balances extracted at a specific period of time. 2marks
OR
Is the statement which shows the debit and credit balances extracted from the ledgers at a
specified date to show the arithmetic accuracy of the double entry.
(iii) The books where the initial entry of the transaction is entered before posting it to the
relevant ledger account. 2marks
(IV) The transactions made for future payment. 2marks
(V) Is the main book of account through which the double entry is completed. 2marks
4. A STUDRNT SHOULD MENTION ANY FIVE SOURCES OF GOVERNMENT
REVENUE. (NOT LIMITED TO POINTS MENTIONED ONLY)
2marks @each point








Tax
Fines and penalties
Interest from investment
Borrowing
Licenses and fees
Dividends from parastatals
Banks advance
Rent and rates
5 (a) THS. 170,000
(b) TSH. 150,000
(C) TSH. 425,960
2 marks @
(d) TSH. 90,000
(e) TSH. 55,000
6. THE NEDS FOR BOOK KEPING IN BUSINESS (5point @ 2 marks)





Business control
Determination of profit
Reliable financial position
Fair tax assessment
Knowledge of credit dealings.
185
SECTION C
A STUDENT SHOULD ANSWER ALL QUESTIONS.
7. (A)
DR
THREE COLUMN CASH BOOK
DATE
2019
OTC 1
6
11
16
25
DETAILS
F
Balance
Adam
Kamau
Cash
BANK
b/d
DIS.ALL
300
500
Balance
BANK
2,200
62,700
4,200
5,100
4,800
C
C
3000
800
NOV1
CASH
b/d
10,300
71,700
2,800
55,300
DATE
2019
OTC 4
16
23
25
30
31
CR
DETAILS
F
HAPPY
Bank
Dorice
Cash
Wages
Balance
DIS.REC
CASH
400
7,100
4,800
C
700
6,300
3,000
C
c/d
1100
2,700
2,800
10,300
(B) GENERAL LEDGES
DR
DATE
2019,
OCT 31
DR
DATE
2019,
OCT 31
DISCOUNT RECEIVED ACCOUNT
AMOUNT DATE
2019
c/d 1100
OCT 31
1100
CR
DETAILS F
DETAILS
Balance
Cash book
DISCOUNT ALLOWED ACCOUNT
DETAILS
Cash book
F AMOUNT DATE
2019
800
OCT 31
800
F AMOUNT
1100
1100
CR
DETAILS
Balance
F AMOUNT
c
/ 800
d 800
(30 ticks @ 0.5 = 15 marks)
8. (i)
KUFAKUNOGA SHOP
DR
Balance b/d
Credit transfer
ADJUSTED CASH BOOK
9,510
4,340
Bank charges
Standing order
Balance c/d
186
BANK
CR
1,000
3,000
9,850
55,300
71,700
13,850
Balance c/d
(ii)
13,850
9,850
KUFAKUNOGA SHOP
BANK RECONCILIATION STATEMENT AS AT 31.3.2018
Balance as per adjusted cash book
9,850
ADD; Unpresented cheque
16,750
26,600
LESS; Uncredited cheque
11,960
BALANCE AS PER BANKNSTATEMENT 14640
(15 ticks @ 1 = 15 marks)
9.
NOREEN JEWELERY
INCOME STATEMENT FOR THE YEAR ENDED 30 DECEMBER 2017
Sales
2,205,600
Less; sales return
4,800
NET SALES
2,200,800
187
LESS; COST OF SALES
Opening stock
164,800
ADD; Purchases
1,656,000
1,820,800
Less; Purchases return
COST OF GOODS AVAILABLE
Less; Closing Stock
4,000
1,816,800
201,600
(1,615,200)
GROSS PROFIT
585,600
ADD; Discount received
47200
632,800
Less; EXPENSES
Insurance
20400
Salaries and wages
324,800
Electricity bills
30,000
Bad debts
19,200
General expenses
44,800
Discount allowed
42,000
Rent and rates
9,600
(490,800)
NET PROFIT
142,000
(23 Ticks @ 0.65217 = 15 marks)
Answers: Series No. 14
1.
i
B
ii
D
iii
D
iv
D
v
D
vi
C
188
vii
D
viii
C
ix
D
x
B
2.
i
E
ii
D
iii
A
iv
G
v
C
3.
SOURCE DOCUMENT
Receipts/cheque
Invoice
Debit note
Credit note
Invoice
i
ii
iii
iv
v
USES
Record cash transactions
To record goods sold on credit/ credit sales
To record goods returned back to supplier
To record goods returned in business by customers
To record goods bought on credit
4.
a. Trial balance
Is the statement prepared that lists debit and credit balances extracted from the ledger
accounts to check arithmetical accuracy of double entry.
b. Imprest system
Is the system of refunding the total amount paid during a given period.
c. Bank charges
Are the expenses charged to the account holder ( customers ) for the service rendered by
the bank.
d. An invoice
Is a document issued when goods are sold on credit showing the cost of goods, quantity,
the customer and when the payment will be made.
e. Cash discount
Is the allowance given to customers when payment is made on the time given.
5.
ii
iii
iv
v
vi
Account to debit
Purchases account
Cash account
Hassan account
Computer account
Chudo account
Account to credit
Cash account
Commission received account
Sales account
Bank account
Bank account
6. importance of petty cash book
i.
Reducing the volume of the cash book, all small cash expenses are recorded in petty
cash book and not other types of cash book.
ii. It helps to control petty expenditures, since chief cashier can audit the petty cshier and
avoid fraud
189
iii.
iv.
v.
It also reduces the probability of errors during book keeping as the head cashier
periodically reviews it.
It is simple to maintain since do not need much knowledge to record and saves time.
It shows clear picture the amount spent during a period and the balance at the end of
each period.
Section c
INCOME STATEMENT FOR THE YEAR ENDING 31ST DECEMBER 2019
Sales
 988,800
Less: return inwards
 6,800
Net sales
 982,000
LESS: COST OF GOODS SOLD
Opening stock
 58,600
Add: purchases
406,750
Add: carriage inwards
20,400
7.
427,150
Less: return outwards
5,000
Net purchases
Cost of goods available for sale (COGAS)
Less: closing stock
Gross profit
Add: commission received
Total income
LESS: EXPENSES
Insurance
Salaries and wages
Fuel and power expenses
Carriage on sales
General expenses
Net profit
8.
DR
Capial
F
MDATE DETAILS
CASH PESA
120,000 250,000 May
purchases
02
190
418,750
563,250
3,200
566,450
6,000
254,800
47,300
32,000
30,000
TWO COLUMN CASH BOOK FOR MAY 2014
DATE DETAILS
May
01
422,150
480,750
62,000
370,100
196,350
CR
F
CASH
MPESA
50,000
May
04
May
07
May
17
May
23
sales
45,000
May
07
M-pesa
C 16,000
May
13
Sales
32,000 May
24
commission
8,000 May
28
May
31
181,000 290,000
Cash
C
16,000
Drawings
5,000
Rent
5,200
Water bills
2,000
balance
c/d 173,800 219.000
181,000 290,000
CHIMWAGA’S JOURNAL PROPER FOR JULY 2021
9.
DEBIT
350,000
100,000
150,000
180,000
400,000
30,000
90,000
20,000
Business buildings
Furniture
Motorcycle
Computer
Van
Debtors
Bank balance
Cash balance
Loan from finca
Account payable
capital
CREDIT
220,000
84,000
1,016,000
1,320,000
1,320,000
Answers: Series No. 15
1.
(i)
C
(ii)
B
(iii)
C
(iv)
A
(v)
A
2.
191
(vi)
A
(vii)
A
(viii)
B
(ix)
B
(x)
D
GROUP A
GROUP B
(i)
B
(ii)
D
(iii)
E
(iv)
A
(v)
G
3. (i) Business entity concept state that the Business is treated as an entity separate from its
owners. It is treated to have a distinct accounting entity which controls the resources of the
concern and is accountable thereof. Accounts are kept for a business entity as distinguished
from the person(s) owning it. All transactions of the business are recorded in the books of
the business from the point of view of the business
Business is distinct separate from the owner of the business i.e. personal matters should not
be included in the business matters
(ii) Going concern concept state that the Business transactions are recorded on the
assumption that the business will continue for a long-time. There is neither the intention
nor the necessity to liquidate the particular business venture in the foreseeable future.
Therefore, it would be able to meet its contractual obligations and use its resources
according to the plans and pre-determined goals. Business is assumed to continue with its
operation indefinitely and that
(iii) Money measurement concept holds that accounting is a measurement and
communication process of the activities of the firm that are measurable in monetary terms.
Thus, only
such transactions and events which can be interpreted in terms of money are recorded.
Events which cannot be expressed in money terms do not find place in the books of
account though they may be very important for the business.
(a) It highlights the causes of difference between the bank balance as per cash book and the
balance as per bank statement. Necessary adjustments can, therefore, be carried out at an
early date.
(b) It reduces the chance of fraud by the staff dealing with cash and cash bring.
(c) It acts as a moral check on the staff of the organization to keep the cash records always up to
date.
(d) Bank balance as per cash book cannot be accepted as final unless it is supported by statement
of bank statement. When these two balances do not tally, reconciliation becomes essential to
determine the correct bank balance that can be used while finalizing the accounts.
(e) It helps in finding out actual position of the bank balance.
4.
Transaction
i
Sold goods on credit
to Latifa
Document
issued
Book of
original entry
Ledger
Name o of the
accounts involved
Sales invoice
Sales day book
Sales
ledger
Debtor account
Sales account
192
ii
Goods returned by
us to supplier.
Debit note
Purchases
return journal
General
ledger
Creditor account
Return outward
account
5. State the nature of the following accounts whether they are debit or credit balance.
Accounts
Nature of the Account
(Debit or Credit)
(xi)
Capital account
Credit nature
(xii) Purchases account
Debit nature
(xiii) Sales account
Credit nature
(xiv) Rent received account
Credit nature
(xv) Rent account
Debit nature
(xvi) Drawings account
Debit nature
(xvii) Machinery account
Debit nature
(xviii) Debtors account
Debit nature
(xix) Creditors account
Credit nature
(xx) Stock account
Debit nature
6. Identify the accounts affected by the following transaction and show action to take in
recording the accounts in the double entry system.
Transaction
Account to be credited Account to be debited
(i)
Owner put cash into business.
Capital account
Cash account
(ii)
Bought goods for cash.
Cash account
Purchases account
(iii)
Sold goods for cash.
Sales account
Cash account
(iv)
Received cash for rent.
Rent account
Cash account
Owner withdraws cash from
business for personal use.
Cash account
Drawings account
(v)
7. Dr
Details
Balance b/d
interest received
Direct deposits
Adjusted cash book
Amount Details
22500
Bank charge
650
Standing order
900
Balance c/d
24050
193
Cr
Amount
780
800
22470
24050
Balance b/d
22470
Pugo Co ltd.’s Bank reconciliation statement as at 31st December 2014
Balance as per adjusted cash book
22470
Add: unpresented cheque
4350
26820
Less: uncredited cheque
4720
Balance as per bank statement
22100
8. T. Thomas’s petty cash book
receipt
fol
io
Date
4,670
45,330
b/d 1/2
1/2
3/2
7/2
10/2
14/2
17/2
20/2
21/2
24/2
28/2
50,000
2,680
47,320
50,000
b/d
details
T. Thomas’s petty cash book
Pv
total
wages
Balance
cash restored
wages
Postage stamps
wages
envelops
wages
J. Mureithi
stationery
wages
balance
c/d
8,760
2,940
9,110
2,280
8,840
4,160
2,750
8,480
47,320
2,680
50,000
Analytical columns
stationer postage ledger
y
8,760
2,940
9,110
2,280
8,840
4,160
2,750
8,480
35,190
5,030
balance
reimbursement
Cash float
9.
General Journal
details
1. Equipment account
Sales account
debit
55
credit
55
194
2,940
4,160
2. Suspense account
Purchases account
60
3. Drawing account
Purchases account
115
4. Bank charges account
Suspense account
38
5. Suspense account
Debtor (B.cross) account
270
Dr
details
Purchases
Debtor (B.cross)
60
115
38
270
Suspense account
Amount
details
60
Difference from the t.b
270
Bank charges
330
Cr
Amount
292
38
330
Answers: Series No. 16
1.
QTS
ANS
i
B
Ii
C
SECTION A (15 MARKS)
10 MARKS
iii Iv v
vi vii Viii ix X
B A A C B
A
B D
195
xi
D
xii
C
Xiii
A
xiv
B
xv
C
@ items =01 Mark x 10 =10Marks
2.
QTS
ANS
I
F
05 MARKS
ii
iii
iv
B
D
C
V
A
@ items =01 Mark x 05 =05Marks
SECTION B (40 MARKS)
3.
(i) Double entry system: Is book keeping principle which calls each financial
business transactions twice.√
(ii) Money measurement Concept: It state that, only events in monetary terms are
recorded and specific currency are identified. √
(iii) Non current asset: these are asset retained for use in the business for a long period
of time and its not for sale. √
(iv) Consolidated fund: all funds of the United Republic to which all Public Money
receipts are paid. √
(v) Accounting: the process of analyzing, recording, summarizing, reporting and
interpreting financial transactions√
@ tick =2 Marks x 05 =10Marks
4. (a) (i) Taxation√
(ii) Licenses√
(iii) Loans/Borrowing√
(iv) Grants and Aids√
(v) Interest from Investment√
(b) (i) If goods its expired√
(ii) If goods not the type ordered√
(iii) If goods damaged in transit√
(iv) If goods is a poor in quality√
(v) If goods was uderweight√
196
@ tick =01 Mark x 10 =10Marks
5. (i) Tshs. 170,500/=√
(ii) Tshs. 150,000/=√
(iii) Tshs.425,510/=√
(iv) Tshs.90,000/=√
(v) Tshs. 55,000/=√
@ tick =2 Marks x 05 =10Marks
6. BOUGHT JOURNAL
Date
Details
2019
RTC Kilimanjaro
100
bags
of Rice@5,000
JAN 1
50 bags of Sugar@7,000
JAN 5
JAN 10
JAN 31
F
Invoice details
Invoice total
500,000√
350,000√
850,000√
Mangi Ltd
10 boxes of cooking oil fat @3,000
12 pairs of Sandal @ 2,000
30,000√
24,000√
54,000√
Moshi Traders
20 pairs of bed sheet @7,000
50 shirts @3,000
140,000√
150,000√
Purchases account
290,000√
1,194,000√
@ tick =01 Mark x 10 =10Marks
SECTION C (45 MARKS)
7. (i) DEBIT
DETAILS
Balance b/d
Dividend
ADJUSTED CASH BOOK
DETAILS
15,000√
Bank charges
2,400√
Charity subscription
197
CREDIT
300√
700√
Credit transfer
Cash deposit
Balance b/d
2,600√
14,000√
34,000√
31,000√
Standing order
Balance c/d
2,000√
31,000√
34,000√
7 (ii) BANK RECONCILIATION STATEMENT AS AT 31 DECEMBER 2008.
TSHS
Starting with adjusted cash book balance
31,000√
Add:Unpresented cheque
Tamale
2,500√
Fadiga
2,900√
5,400√
36,400√
Less: Uncredted cheque
6,900√
Balance as per bank statement
29,500√
@ tick =0.833 Mark x 18 =15Marks
8. Nyakabindi Region Income statement for the year ended 31 December,2017.
Sales
130,000√
Less:Return inwards
10,000√
Net sales
120,000√
Less: Cost of gods Sold:
Opening Stock
12,000√
Add: Purchases
72,000√
Less: Return outwards
1,500√
Net Purchases
70,500√
Cost of goods available for sales
82,500√
Less: Closing stock
7,500√
Cost of goods sold
75,000√
Gross profit
45,000√
Add:Interest received
260√
Total income
45,260√
Less: Expenses: Carriage on sales
3,000√
Discount allowed
800√
Rent and rates
4,960√
Salaries
12,000√
Bank charges
3,600√
Total expenses
24,360√
Net profit
20,900√
@ tick =0.75 Mark x 20 =15Marks
9. (a) A. Naweza and Sons Ltd Trial balance as at 31 December, 2019
S/NO NAME OF ACCOUNT
DEBIT
CREDIT
198
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Cash
Sales
Van
Capital
Purchases
H. James – A Debtor
Returns outwards
T. Chama – A Creditor
Office Equipment
Returns inwards
15,300√
48,000√
75,000√
250,000√
62,000√
4,100√
8,400√
12,700√
156,100√
6,600√
319,100√
319,100√
@ tick =01 Mark x 10=10Marks
9.(b) JOURNAL ENTRIES
Date
(i)
(ii)
(iii)
Details
Debit
100,000√
Suspense account
Sales account
Charles account
Chacha account
Suspense account
Discount allowed account
Credit
100,000√
33,000√
33,000√
80,000√
80,000√
@ tick =1.2 Mark x 06= 05Marks
Answers: Series No. 17
1. MULTIPAL QUESTIONS ( 10 marks)
I
Ii
iii
Iv
v
B
A
A
A
C
vi
D
199
vii
A
Viii
C
ix
C
x
D
1@ =10 Marks
2. MATCHING ITEM
GROUP A
I
ii
Iii
Iv
V
GROUP B
E
D
B
C
H
1@ =5Marks
SECTION B (40 Marks)
Answer all questions from this section
3. (a) i) Unpresented cheques
ii) Uncredited cheques
iii)
iv)
v)
vi)
vii)
Bank charges
Standing order
Direct deposits
Dishonored cheque
Error recording
Any five 2 @ = 10 marks
4. i) To check the arithmetical accuracy of double entry record
ii) it is basis for preparation of financial statements
iii) It detects errors such as casting errors and wrong addition
iv) It shows personal, Real and Nominal account
v) It list all accounts on the single page
2@ =10 marks
5. i) taxation
ii) borrowing ( internal and external)
iii) Dividends
iv)license and fees
i)
ii)
iii)
iv)
Fines and pelnaties
Grants
Aid
Foreign investment
Any five 2@ =10 marks
6. i) purchases journal
200
Invoice
ii) Sales returns
Credit note
iii) Purchases returns
Credit note
iv) Credit sales
Invoice
v) General journal
Invoice
1@ = 10 marks
7.
PETTY CASH BOOK
Receipt Folio Date
Particulars
Voucher
number
8400
11600
2004
Sept16 Bal b/d
Cash
18
Courier
19
Donation
20
Office
cleaning
27
Postage
29
Detergent ,
blushes, and
gloves
30
Cleanlin
ess
1
2
1500
2000
3
4
5
4000
500
4000
1200
9200
10,800
2,0000
1200
5200
Balance c/d
2,0000
10800
9200
Total
payment
Postage
General
&
expenses
telephone
1500
2000
500
2000
2000
Balance b/d
Cash
0.75@ = 15 marks
8.
Adjusted cash book
2004
June 30 Bal b/d
Interest
786,000
196,000
2004
June 30
982,000
201
bank charges
Standing order
Bal c/d
10,000
10,000
962,000
982,000
July 1 bal b/d
962,000
ii)
Bank Reconciliation statement as at 30th June 2004
Balance as per Adjusted Cash Book
962,000
Add : Unpresented cheque
568,000
1,530,000
Less : uncredited cheque
152,000
Balance as per Bank statement
1,378,000
1.15@ =15 marks
9. Dr
1. Capital account
Cr
Date
1/1/2010
Particulars
Cash
Amount Date
Particulars
100,000 31/1/2010 Balance c/d
1/2/2010
Balance b/d
100,000
2.
Date
1/1/2010
5/2/2010
Particulars
Cash
Cash
1/2/2010
Balance b/d
Purchases account
amount
35,000
50,000
85,000
85,000
3.
Date
Particulars
31/1/2010 Balance c/d
Date
Particulars
10/1/2010 Cash
1/2/2010 Balance b/d
Amount
100,000
Date
Particulars
31/1/2010 Balance c/d
Amount
85,000
85,000
Sale account
amount Date
122,000 3/1/2010
18/1/2010
122,000
1/2/2010
Particulars
Cash
Cash
Balance b/d
4. Furniture account
Amount Date
Particulars
25,000 31/1/2010 Balance c/d
25,000
202
Amount
80,000
42,000
122,000
122,000
Amount
25,000
1.25 @= 15
Answers: Series No. 18
SECTION A
1. 1 mark @ each tick=total of 10 marks
I
B
Ii
B
Iii
D
iv
D
v
C
Vi
B
203
vii
A
viii
D
ix
A
x
D
2. 1mark @ each tick=total of 5 marks
Ii
iii
iv
LIST A I
F
D
B
LIST B C
V
G
SECTION B
3. 2 marks for each item = total of 10 marks
i.
Purchases day book- Is used to record the day to day credit purchases/ Is used to
record goods purchased on credit.
ii.
Sales day book- Is used to record goods sold on credit or Is used to record day to
day credit sales.
iii.
Purchases return day book- Is used to record goods returned to suppliers by the
business.
iv.
Sales return day book- Is used to record goods returned to the business by
customers or debtors.
v.
General Journal- Is used to record all transactions which by nature cannot be
recorded in any other book of prime entry
4. 2 marks for each item = total of 10 marks
i.
Book-keeping- Is an art of recording business transactions in the books of accounts
in terms of money or money’s worth.
ii.
Bank overdraft- Is the withdrawal of money from a bank account in excess of what
is in your bank account.
Or Bank overdraft is a facility given by the bank to their current account holders to
withdraw money in excess from their account of what is in the account.
iii.
Trial balance- Is a list of debit and credit balances extracted from the ledgers in
order to check the arithmetical accuracy of the double entry.
iv.
Bank statement- Is a statement issued by a bank to the client or customer showing
the customer’s current account maintained at bank.
v.
Drawings- Is the act of taking money out of the business for personal use.
5. 2 marks for each item @5 Items from any of the following = total of 10 marks
i)
Differences of amount in figures and in words.
ii)
Differences of signatures in a cheque with the specimen of signature at bank.
iii)
Postdated cheque.
iv)
A stale cheque
v)
Bankrupt of the drawer
vi)
Insufficient fund in the account of the drawer to meet the amount written in a
cheque
204
vii)
Instructions given by the account holder (drawer) not to honor or make payments
upon a cheque.
6. 1 mark for each item = total of 10 marks
i.
Personal Account
ii.
Nominal Account
iii.
Real Account
iv.
Nominal Account
v.
Nominal Account
vi.
Real Account
vii.
Real Account
viii. Nominal Account
ix.
Personal Account
x.
Real Account
SECTION C
7. 0.454 for each tick @ 33 ticks = total of 15 marks
PETTY CASH BOOK
RECEIPT DATE DETAILS F
TOTAL POSTAGE OFFICE WAGES LEDGER
28,800
1.3
Balance
b/d
71,000
1.3
Cash
3.3
Postage
12,900
12,900
5.3
Typewriter
6,700
6,700
6.3
Fema
7,600
7,600
6.3
C.wages
9,700
9,700
8.3
Stationary
5,500
5,500
10.3
Stamps
19,700
19,700
11.3
Ndabila
3,800
3,800
13.3
Wages
10,400
10,400
15.3
Books
10,000
10,000
18.3
Nyagawa
4,000
4,000
90,300
32,600
22,200
20,100
15,400
19.3
Balance
c/d
9,500
99,800
99,800
20.3
Balance
b/d
9,500
20.3
Cash
90,300
8. 0.882 mark for each tick @17 ticks = 15 marks
KIDDO STATEMENT OF FINANCIAL POSITION AS AT 30th MAY 2016
DETAILS
ASSETS
NON-CURRENT ASSETS
Furniture and fittings
Land and buildings
AMOUNTS
180,000
848,000
205
AMOUNTS
Total Non-Current Assets
CURRENT ASSETS
Stock
Debtors
Cash in hand
Cash at bank
Total Current Assets
TOTAL ASSETS
Less: LIABILITIES
CURRENT LIABILITIES
Creditors
1,028,000
180,000
312,000
50,000
100,000
642,000
1,670,000
160,000
1,510,000
Financed by;
Capital
Add; Net profit
1,140,000
656,000
1,796,000
286,000
1,510,000
Less; Drawings
9. 0.75 mark for each tick @ 20 ticks = Total of 15 marks
JOURNAL ENTRIES
S/NO
i)
DETAILS
Suspense Account
Debtor Account
F
DR
CR
4,400
4,400
206
ii)
iii)
iv)
v)
Suspense Account
Obby Account
15,000
Sales Account
Suspense Account
1,500
Cash Account
Suspense Account
232
15,000
1,500
232
6,132
Suspense Account
Returns Outward Account
DR
Debtor
Obby
Returns outward
6,132
SUSPENSE ACCOUNT
4,400 Difference in trial balance
15,000 Sales
6,132 Cash
25,532
CR
23,800
1,500
232
25,532
Answers: Series No. 19
1. @ = 10 Marks.
I.
II.
C
C
@ item 1mark.
III
C
IV
D
V
A
VI
C
207
VII
C
VIII
D
IX
A
X
B
2.
I
J
@Item 1 mark
II
F
III
K
IV
H
V
I
Section b 40 mark
3. The following are the types of journals
i.
Sales day book
ii.
Purchases day book
iii. Cash book
iv.
Sales return day book
v.
Purchases return day book
vi.
General journal
Any five correct points = 10 marks @ 2marks
4. The following are the objective of studying bookkeeping.
i.
Profit determination
ii.
Knowledge of credit dealings
iii. Business control
iv.
Fair tax assessment
v.
Reliable financial position.
Any five correct points = 10 marks @ 2marks
5. Below are the advantages of petty cash book.
i.
It reduces the task of posting by one item to the ledger.
ii.
It reduces the task of handling and recording the small cash payments to main
cashier
iii. It reduces misappropriation of fund.
iv.
It keeps some minor details out of the cash book
v.
Payment from the petty cash book is done after using a voucher to certify the
expenses
Any five correct points = 10 marks @ 2marks
6. Below are the reasons for disagreement
vi.
Unpresented cheque
vii.
Uncredited cheque
viii. Standing order
208
ix.
x.
xi.
Dishonoured cheques
Bank charges
Credit transfer
Any five correct points = 10 marks @ 2marks
SECTION C 45 MARKS
ABC TRADERS
7. Income statement for the year ended 31st December 1998
Sales
Less cost of goods sold
Opening stock
Add purchases
Cost of goods available for sale
Less closing stock
18,462
3246
11380
14629
(2548)
Answers: Series No. 20
1.
i.
C
ii.
C
iii.
C
iv.
D
v.
B
vi.
B
vii.
B
viii.
A
ix.
D
x.
C
10 ticks @ 01 marks = 10 marks
2.
LIST A
i.
ii.
iii.
209
iv.
v.
LIST B
G
D
E
A
C
5 ticks @ 01 marks = 05 marks
3. Importance of bank reconciliation
i.
A bank reconciliation statement locates errors or omissions that may have been made
either on the part of the customer (business entity) or the bank.
ii.
Preparation of a bank reconciliation statement enables a business entity to get
assurance of the correctness of the bank balance shown in the cash book.
iii. A bank reconciliation statement facilitates the preparation of a revised cash book.
iv.
Periodic preparation of this statement reduces the chances of embezzlement by the
staff of the business entity or even by the bank staff.
v.
A reconciliation statement helps in revealing unnecessary delays in the collection of
cheques by the bank.
5 ticks @ 02 marks = 10 marks
4. a)
i.
Cash book
ii.
Purchases day book/purchases journal
iii. Sales day book/sales journal
iv.
General journal/Journal proper 5 ticks @ 01 marks = 5 marks
v.
Return inward day book/Sales return journal
b)
i.
Nominal account
ii.
Nominal account
iii. Personal account 5 ticks @ 01 marks = 5 marks
iv.
Real account
v.
Nominal account
5. Complete the following table showing which accounts to be debited and which are to be credited.
S/N
TRANSACTION
Purchased equipment from ODDO on
credit
Returned to ODDO some of the equipment
bought from him
210
ACCOUNT TO BE
DEBITED
Equipment 
ACCOUNT TO
BE CREDITED
ODDO
ODDO
Equipment
6.
The proprietor, MAGU paid in a cheque
from his private funds.
Paid cash into bank
Bank/Cash book
Capital 
Bank 
Cash 
Rent received in cash
Cash 
Rent received
10 icks @ 01 marks = 10 marks
A=205,000
B=80,000
5 ticks @ 2 marks = 10 marks
C=210,000
D=7,000
E=120,000
7. DR.
KIMAMBO TRADERS THREE COLUMN CASH BOOK
DATE
DET
AILS
1.1.201
8
6.1.201
8
15.1.20
18
31.1.20
18
Balan b/
ce
d
Sales
Debt
or
Cash
F
DISC.
AL
BANK
DATE
DET
AIL
S
3,500,00
0
12,500,0
00
20,000,0
00
31.1.2
018
31.1.2
018
Cred
itor
Ban
k
Bala
nce
5,000,0
00
16,000,0
00
45,000,0
00
15,900,0
00
80,900,0
00
100,000

52,400,0
00
C
5,000,0
00
1.2.201
8
CASH
Balan b/
ce
d
F
DISC.
RE
CR
CASH
1,500,0
00
C
28,500,00
0
15,900,000

100,000
c/d
1,500,0
00
16,000,000
15 icks @ 01 marks = 15 marks
8. Journal entries
GENERAL JOURNAL
S/N
DETAILS
F DR
211
BANK
CR
52,400,00
0
80,900,00
0
i.
Suspense
100,000
Sales
ii.
100,000
J. Mwajabu
250,000
J. Rajabu
iii.
250,000
Rent
70,000
Suspense
iv.
70,000
Suspense
300,000
Discount received
v.
300,000
Sales
360,000
Motor van disposal
360,000
a. Suspense account
DR.
SUSPENSE
Sales
100,000
Difference in trial balance
Discount received
300,000 Rent
400,000
CR.
330,000
70,000
400,000
15 icks @ 01 marks = 15 marks
9. a. Income statement
MALIAN CO. LTD INCOME STATEMENT FOR THE YEAR ENDED 31st DECEMBER
2020
212
PARTICULARS
AMOUNT
(TZS)
AMOUNT
(TZS)
Sales
AMOUNT
(TZS)
28,500,000
Less: Return inwards
(1,000,000)
Net sales/Turnover
27,500,000
Less: Cost of goods sold
Opening inventory
Add: Purchases
Carriage inwards
9,500,000
11,500,000
1,200,000
12,700,000
Less: Return outwards
(800,000)
Net purchases
11,900,000
Cost of goods available for sale
21,400,000
Less: Closing inventory
(2,000,000)
Cost of goods sold
(19,400,000)
Gross profit
8,100,000
Add: Other incomes
Discount received
3,500,000
Total incomes
11.600,000
Less: Expenses
Carriage outward
1,700,000
Wages and Salaries
3,000,000
Discount allowed
2,000,000
Rent and Rates
1,500,000
Net profit
(8,200,000)
3,400,000
b. Statement of financial position
213
MALIAN CO. LTD STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER
2020
PARTICULARS
TZS
TZS
TZS
Non-current Assets
Land and Building
19,000,000
Machinery
22,000,000
Motor van
16,000,000
57,000,000
Current Assets
Inventory
2,000,000
Account receivable
14,000,000
16,000,000
Total assets
73,000,000
OWNERS EQUITY AND
LIABILITIES
Capital
44,800,000
Add: Net profit
3,400,000
48,200,000
Less: Drawings
2,200,000
46,000,000
Long –term liabilities
Loan from CRDB
10,000,000
Current liabilities
Account payables
17,000,000
Owner’s equity + Liabilities
73,000,000
30 ticks @ 0.5 marks = 15 marks
Answers: Series No. 21
1.
I
ii
iii
iv
v
Vi
214
vii
viii
ix
X
B
A
D
D
D
A
C
C
A
D
2.
I
E
ii
J
iii
I
iv
D
V
A
3.
a) TRADE DISCOUNT
Allowance which is given by the wholesaler to retailer off the catalogue or invoice price.
b) TWO COLUMN CASH BOOK
Book which consist cash transactions and bank transactions.
c) REAL ACCOUNT
All assets account except debtors account.
d) BUSINESS ENTITY CONCEPT
Concept of separating business from its owner.
e) TRIAL BALANCE
Statement which shows the account balance extracted from the ledger.
4.
a) 856
b) 6777
c) 8870
d) (230)
e) 8440
5.
 Wrong order
 Wrong type
 Wrong size
 Expired
 Poor quality or low quality
6.
 Unpresented cheque
 Uncredited cheque
 Standing order
 Dishonoured cheque
 Bank charges
7.
THREE COLUMN CASH BOOK
Date
Details
Folio
Disc
Cash
Bank
Date
215
Details
Folio
Disc
Cash
Bank
1998
MAY
01
05
06
08
08
08
22
31
Balance
Bd
Sales
Cash
C
B.Shaw
B. Benhim
J. Malthus
M.Chikawe
Balance
cd
2500
1800
200
150
160
60
7400
2000
3800
2850
3040
1440
3855
570
1998
MAY
02
06
07
07
07
10.
5740
15
20
30
31
Purchases
Bank
A. John
H. Hofman
D. Jackson
Office
furniture
Drawing
A.Adleman
Wages
Balance
2000
C
2000
45
90
420
24
cd
22945
579
1455
2910
13580
3000
500
776
1000
1464
5740
22945
DISCOUNT ALLOWED ACCOUNT
Date
1998
MAY
08
08
08
22
Details
Folio
B. Shaw
B.Benhim
J.Malthus
M.Chikawe
\
Amount
200
150
160
60
570
Date
1998
MAY
31
Detail
Folio
Amount
Balance
cd
570
570
DISCOUNT RECEIVED ACCOUNT
Date
1998
MAY
31
Details
Folio
Amount
Balance
cd
579
Date
1998
MAY
07
07
07
20
Details
A. John
H.Hofma
D.Jackson
A.Adleman
579
8.
Folio
Amount
45
90
420
24
579
IN THE BOOKS OF SABRINA HAMZA
PURCHASES DAY BOOK
Date
MAY 01
Details
IBRAHIM
Folio
216
Invoice Detail
Total Amount
04
10 Bags Jeans each 600
PL 01 10*600= 6000
6000
RISING STAR
2 Litres of cooking oil 500 per
litre
PL 02 2*500= 1000
1000
NAIMA GENERAL SUPPLIER
10 dozen of bedsheet each 2000
PL 03 10*2000= 20000
20000
KANDURU
100 Litres 600 per dozen
PURCHASES ACCOUNT
PL 04 100*600= 60000
60000
GL
87000
04
15
30
IBRAHMU ACCOUNT
Date
Details
MAY 31 Balance
Folio
cd
Amount
6000
Date
MAY
01
Details
Puchases
Folio
6000
Amount
6000
6000
RISING STAR ACCOUNT
Date
Details
MAY 31 Balance
Folio
cd
Amount
1000
1000
Date
MAY O4
Details
Purchases
Folio
Amount
1000
1000
Details
Puchases
Folio
Amount
20000
20000
Details
Puchases
Folio
Amount
60000
60000
NAIMA GENERAL SUPPLIER ACCOUNT
Date
Details
MAY 31 Balance
Folio
cd
Amount
20000
20000
Date
MAY 04
KANDURU ACCOUNT
Date
Details
MAY 31 Balance
Folio
cd
Amount
60000
60000
Date
MAY 15
PURCHASES ACCOUNT
Date
MAY 01
04
04
Details
Ibrahim
Rising Star
Naima Genera lsupplier
Folio Amount
6000
1000
20000
Date
MAY 31
217
Details
Balance
Folio
cd
Amount
87000
15
Kanduru
9.
60000
87000
87000
BANK RECONCILIATION STATEMENT AS AT 31ST MARCH 2008
Balance as per Cash Book
(52800)
Add. Unpresented Cheque
Abuu Nasra
4900
Transfer Credit
570
5470
(47330)
LESS. Uncredited Cheque
Hamisi
1600
Standing Order
490
Bank Charges
280
2370
(49700)
Balance as pe Bank Statement
Answers: Series No. 22
1. 1 Mark @ = 10 Marks.
i
ii
iii
B
A
A
iv
C
2. 1 Mark @ = 5 Marks.
i
ii
iii
v
B
vi
B
iv
218
vii
C
viii
A
v
ix
D
x
D
A
I
H
F
C
3. 2 Marks @ = 10 Marks.
i)
Purchases journal.
ii)
Purchases returns journal.
iii)
Sales journal.
iv)
Sales returns journal.
v)
Cash book.
vi)
General journal.
4. 2 Marks @ = 10 Marks.
a) Contra entry; are those entries in which the same account can be debited and credited in a
contrary situation. It is a transaction which affects both cash and bank accounts.
b) Cash discount; this is an allowance given to a customer when he/she manage to pay a debt
on a time specified. It divided into discount allowed and discount received.
c) Book-keeping errors; are those mistakes committed by book-keepers when recording
transactions in the books of accounts.
d) Bank reconciliation; is the statement which is prepared to reconcile the cause of difference
between cash book balance and bank statement balance on a specific date.
e) Imprest system is the system where by a fresh amount advance to a petty cashier at the
beginning or ending of each trading period.
5. (a) 1 Mark @ = 4 Marks.
i)
Errors of omission.
ii)
Errors of commission.
iii)
Errors of principles.
iv)
Errors of original entries.
(b) 1 Mark @ = 6 Marks.
i) Managers.
ii) Employees.
iii) Investors.
iv) Government.
v) Financial institutions.
vi) Suppliers.
vii) Customers.
6. 1 Mark @ = 10 Marks.
219
ACCOUNT TO BE DEBITED
Motor vehicle account
Insurance account
Drawing account
Van account
Cash account
7. 0.38 @ = 15 Marks.
DR
DETAILS
Balance
Sales
Cash
Sara
Sauna
Subira
Sales
Bank
Samweli
Balance
b/d
"c"
"c"
b/d
ACCOUNT TO BE CREDITED
Cash account
Bank account
Bank account
Bank account
Sales account
MASUMBUKO'S THREE COLUMN CASH BOOK
CR
DISC
DISC
CASH BANK
DETAILS
CASH BANK
ALL
REC
4,600
9,300 Purchases
2,800
4,400
Bank
"c"
2,500
2500 John
80
1,520
120
3,880 Jackob
150
2,850
90
2,910 Jackson
70
1,330
60
1,940 Furniture
2,900
3,500 Drawings
1,000
1,800
Salary
1,500
100
2,400
Cash
"c"
1,800
Salum
80
1,920
Wages
1,300
Balance
c/d
4,980 10,830
370 13,200 24,030
380 13,200 24,030
4,980 10,830
8. 0.9 @ = 15 Marks.
220
STATEMENT OF FINANCIAL POSITION AS AT
31-Dec-10
TZS
TZS
NON-CURRENT ASSETS
Buildng
500,000
Fixture and fittings
100,000
Palnt and Machinery
300,000 900,000
CURRENT ASSETS
Stock
Debtors
Cash in hand
Cash at bank
TOTAL ASSETS
NON-CURRENT LIABILITIES
Liabilities
CURRENT LIABILITIES
Creditors
NET ASSETS
100,000
250,000
50,000
250,000
650,000
1,550,000
200,000
350,000 -550,000
1,000,000
Financed by;
Capital
Owner's equity
1,000,000
1,000,000
9. 0.94 @ = 15 Marks.
DR
ADJUSTED CASH BOOK
Balance
b/d
420,000 Bank charges
Cash
120,000 Standing order
Interest
15,000 Balance
c/d
555,000
Balance
b/d
392,000
BANK RECONCILIATION STATEMENT
AS AT 31 DEC 2009
Balance as per Bank statement
396,000
Add: Uncredited cheque
100,000
496,000
Less: Unpresented cheque
104,000
Balance as per adjusted Cash book
392,000
221
CR
18,000
145,000
392,000
555,000
Answers: Series No. 23
1.
i.
ii.
B
iii.
D
C
iv.
v.
B
D
vi.
B
vii. Viii.
C
A
ix.
D
x.
A
2.
LIST A
LIST B
i.
C
ii.
E
iii.
B
iv.
G
v.
F
SECTION B (40 MARKS)
3.
S/N
a)
b)
c)
d)
e)
DEBIT
Bank Account
Salaries Account
Bank Account
Purchases Account
Motor van Account
CREDIT
Cash Account
Cash Account
Jane Account
Cash Account
Bank Account
4. a. Re- imbursement: is money paid back to the petty cashier as repayment for the small expenses
incurred.
b. Imprest system: this is a system where the main cashier gives a petty cashier a fixed sum of
money to be spent on small and petty expenses.
c. Cash float: is the amount of money given to a petty cashier to be spent on small and petty
expenses over a specific period of time.
d. Petty cash book: is a book which is used to record small expenses or expenditures which take
place time to time within the business under imprest system.
e. Bank statement: is a statement prepared by the bank and sent to the customer showing
transactions between the bank and customer for verification.
5.
i.
ii.
iii.
iv.
v.
Sales journal
Sales returns journal/returns inwards day book
Purchases returns journal/ returns outwards day book
Purchases journal
Cash book
222
6.
i.
ii.
iii.
iv.
v.
Personal Account
Machinery Account
Nominal Account
Capital Account
Insurance Account
SECTION C (45 MARKS @15)
7. DR.
MONICA’S TWO COLUMN CASH BOOK
DATE
DETAILS
F
CASH
BANK
DATE
2021
1ST APRIL
5TH APRIL
10TH APRIL
14TH APRIL
25TH APRIL
27TH APRIL
28TH APRIL
Capital
Sales
Cash
Ipyana-loan
Sales
Bank
Sales
L2
L4
C
L5
L4
C
L4
1st MAY
Balance
b/f
2021
3RD APRIL
10TH APRIL
20TH APRIL
22ND
APRIL
26TH APRIL
100,000 27TH APRIL
740,000 30TH APRIL
425,000
200,000
300,000
150,000
200,000
250,000
40,000
50,000
450,000
100,000
150,000
1,250,000
700,000
DETAIL
S
F
Purchase
s
Bank
Wages
Purchase
Insurance
Cash
Balance
L3
C
L6
L3
L7
C
c/f
CR.
BANK
CASH
100,000
250,000
50,000
150,000
700,000
1,250,000
1
90,000
100,000
25,000
100,000
425,000
740,000
8.
DATE
2021
APRIL 1ST
APRIL 5TH
APRIL 12TH
APRIL 15TH
APRIL 22ND
PARTICULARS
PRINCE’S SALES DAY BOOK
INVOICE INVOICE
NUMBER DETAILS
INVOICE
TOTALS
80,000
250,000
330,000
MERCY
100 pairs of shoes at 2,000 @
200 pairs of boots at 3,000 @
200,000
600,000
800,000
BARAKA
100 dozens of exercise at 3000 @
200 reams of papers 1500 @
300,000
300,000
600,000
5,000
5,000
JUNIOR
10 dozen of Vitenge at 8,000 @
25 dozen of khanga at 10,000@
NEEMA
Credit sales at 5,000
STAR BOOK STORE
223
APRIL 30TH
200 dictionaries at 2,500 @
800 fiction book at 500 @
Transfer to the credit side of sales account
500,000
400,000
900,000
2,635,000
GENERAL LEDGER
DR.
SALES ACCOUNT
DATE PARTICULARS F AMOUNT
DATE
2021
30TH
APRIL
CR.
PARTICULARS F AMOUNT
SUNDRY
DEBTORS
2,635,000
9.
MARO TRADERS LTD’S
INCOME STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2019
DETAILS
SHS
SHS
SALES
620,000
LESS: SALES RETURNS
12,000
NETSALES
LESS: COST OF GOODS SOLD
OPENING INVENTORY
ADD: PURCHASES
CARRIAGE ON PURCHASES
LESS: PURCHASES RETUNS
NET PURCHASES
COST OF GOODS AV. SALE
LESS: CLOSING STOCK
GROSS PROFIT
ADD: OTHER INCOMES
COMMISSION RECEIVED
LESS: EXPENSES
CARRIAGE ON SALES
SALARIES & WAGES
ELECTRICITY
DISCOUNT ALLOWED
RENT
GENERAL EXPENSES
NET PROFIT
SHS
608,000
70,000
350,000
15,000
365,000
5,000
360,000
430,000
50,000
380,000
228,000
10,000
238,000
8,000
11,000
7,000
4,000
3,000
6,000
224
39,000
199,000
Answers: Series No. 24
1. 1 Mark @ = 10 Marks.
i
C
ii
B
iii
C
iv
B
v
A
vi
D
vii
B
viii
C
ix
A
x
C
2. 1 Mark @ = 5 Marks.
i
H
ii
D
iii
A
iv
G
v
B
3. 2 Marks @ = 10 Marks.
(a) Contra entry is where completion of double entry done in the same account, that is
debit and credit note in the same book
WHILE
Double entry system refers to the system which requires business transactions to be
recorded twice in the books of account.
(b) Errors of omission these are errors which occurs when transactions is completely
omitted from the books of accounts, means transactions was not recorded in any books
of account.
WHILE
Errors of commission this are errors which occur when the correct amount is entered in
the wrong personal account e.g recording transaction in Amos’s account instead of
Amon’s account.
(c) Development expenditure these are government expenditures on development projects
e.g construction of government buildings, roads, hospitals, bridges etc.
WHILE
Revenue expenditure these are day to day expenses for executing operations of the
government for example printing, photocopying, fuel etc.
(d) Carriage inward these are cost of transporting goods into the business. It increases the
cost of goods purchased.
WHILE
Carriage outward refers to the cost of transporting gods to the customer’s premises.
225
(e) Exchequer account is a special account where all public money is deposited. It is
maintained by the central bank under the custody of treasury.
WHILE
Nominal accounts these are accounts in which all expenses incurred and revenue earned
by the are recorded.
4. (a) 2 Marks.
General journal is the book of prime entry which used to record transactions which
are not recorded in any other books of prime entry.
(b) 2 Marks @ = 8 Marks.
i) Used to record fixed assets which bought and sold on credit.
ii) Used to record correction of errors.
iii) Recording of open and closing entries.
iv) Adjusted entries in various accounts.
5. 0.5 @ = 10 Marks.
RECEIP
120
2380
88
443
PETTY CASH BOOK FOR THE MONTH OF APRIL 2019
VO TOTAL TRAVE POST STATI LEDG
F DATE
DETAILS
NO PAY LLING AGE ONAR ER
April
1 balance b/d
2 Cash
4 Postage
650
650
9 Bahaye
255
255
13 Bus fare
100
100
17 Envelopes
90
90
23 Cash
30 Petrol
1050 1050
balance c/d
443
2588 1150
650
90
255
1-May Balance b/d
6. 10 Marks.
(i)
Trade discount
Trade discount = invoice price x % discount
Trade discount = 400,000 x 10% = 40,000
⸫ Trade discount = 40,000. ------------------------------------- 2.5 Marks.
226
(ii)
(iii)
(iv)
Invoice price.
Invoice price = invoice price – Trade discount
Invoice price = 400,000 – 40,000 = 360,000
⸫ Invoice price = 360,000. ------------------------------------- 2.5 Marks.
Cash discount.
Cash discount = price after trade discount x % cash discount.
Cash discount = 360,000 x 5% = 18,000
⸫ Cash discount = 18,000. ------------------------------------------ 2.5 marks.
Amount to be paid by Mwaikasa.
Amount to be paid = invoice price – cash discount.
Amount to be paid =360,000 – 18,000 = 342,000
⸫ amount to be paid by Mwaikasa = 342,000. ----------------------------- 2.5 Marks
7. 0.5 @ = 15 Marks.
DR
DATE DETAILS
1998
1-May Balance
3-May J. baraka
9-May Sales
13-May P. Alimadi
17-May Sales
23-May Mohamed
25-May Bank
1-Jun Balance
KASSIM'S
THREE COLUMN CASH BOOK
DR
F CASH BANK DISC DATE DETAILS
F CASH BANK DISC
1998
b/d 60,000 58,000
5-May Transport
2280
120
3312
68 7-May NBC finance
8000
200 1000 11-May wages
2080 132
2100 15-May Rent
2400
9000 1000 19-May Telephone
489
1290
21-May water bill
311
"c" 7500
25-May Cash
"c"
7500
27-May Salaries
2500
28-May Manag. Salar
3750
30-May stationary
6111
189
30-May Balance
c/d 57299 49682
68990 73412 1068
68990 73412 441
b/d 57299 49682
227
8. 0.42 mark @ = 15 Marks.
PANGONI ENTERPRISE CO. LTD INCOME STATEMENT
FOR THE YEAR ENDING 31 DEC 2019.
Sales
5,650
Less: Return inward
650
Net sales
5,000
Less: COST OF GOODS SOLD
Opening stock
1,560
Add: Purchases
2,538
Carriage in ward
22
4,120
Less: Return outward
60
Cost of goods available for sale
4,060
Less: Closing stock
1,060
3,000
Gross profit
2,000
Less: EXPENSES
Carriage on sales
1,050
Insurance
180
Bad debts
120
Depreciation
200
Transportation
150
1,700
Net profit
300
228
STATEMENT OF FINANCIAL POSITION AS AT 31 DEC 2019
NON-CURRENT ASSETS
Premises
1,000
Land and building
2,500
Furniture and fittings
1,500
Total fixed Assets
5,000
CURRENT ASSETS
Stock
1,060
Cash in hand
1,000
Cash at bank
1,900
Debtors
1,040
5,000
Total assets
10,000
CURRENT LIABILITIES
Creditors
-4,000
Net assets
6,000
Financed by;
Capital
Add: Net profit
7,200
300
7,500
1,500
6,000
Less: Drawings
229
9. 0.68 @ = 15 Marks.
SIMON AND SONS LTD.
TRIAL BALANCE AS AT 31 DEC 1988
S/N
PARTICULARS
DEBIT CREDIT
1 Purchases
15,740
2 Stock
3,790
3 Return in wards
120
4 Carriage in wards
50
5 carriage in wards
140
6 Drawings
7,360
7 Premises
38,000
8 Fixture and fittings
10,500
9 Wages and salaries
9,310
10 Advertising
1,180
11 Cash at bank
2,010
12 Cash in hand
60
13 Debtors
2,240
14 Machinery
7,170
15 Sales
32,830
16 Returns outwards
310
17 Rent received
540
18 Creditors
1,870
19 Capital
54,950
20 Commision received
7,170
97,670
97,670
230
Answers: Series No. 25
1.
i
C
ii
B
iii
A
iv
C
v
D
vi
D
vii
C
viii
A
ix
B
x
A
2.
i
E
ii
C
iii
A
iv
G
v
F
SECTION B ( 40 Marks)
3. Key users of financial statement
i.
Investors
ii. Employees
iii. Owners/ shareholders
iv.
Lendors
v.
Customers
( any five @ 2marks= 10marks)
vi.
Government
vii.
Supplier
4. Terms
i.
Consolidated fund these are overall fund of United Republic of Tanzania to
which all public revenue and other public money receipts are paid in order to
meet government expenditure.
ii. Virament is an authority granted by the minister for finance to transfer
approved fund from one vote to another.
iii. Three column cash book is a cash book which contains three columns namely;
cash column, bank column and discount.
iv.
Suspense is a temporary account to which the difference in trial balance are
entered.
v.
Books of prime entry are those books which are used to record all transaction
before posting to the ledger.
5. Objectives of book keeping
i.
Determination of profit
ii. Knowledge of credit dealings
iii. Business control
iv.
Fair tax assessment
v.
Reliable financial position
6.
1.Real account
2.Personal account
3.Personal account
4.Real account
231
5.Nominal account
6. Nominal account
7. Nominal account
8. Personal account
9. real account
10. Personal account
7.
Date
1/11/2020
SECTION C (45 Marks)
SALES DAY BOOK
particular
folio
BAGAMWEZI
SL1
Invoice
details
10 pairs of shoes @ TZS 13,000
130,000
20 meters of cotton cloth @ TZS 10,000
200,000
Invoice
total
330,000
Less:trade discount ( 10%×330,000)
16/11/2020
KAKAKUONA LTD
(33,000)
297,000
SL2
10 pieces of jeans @ TZS 5000
50,000
50 pieces of woollen pullover @ 1,500
75,000
125,000
Less: 10% trade discount (10%×125,000)
28/11/2020
30/11/2020
KARIAKOO TRADERS
(12,500)
SL3
10 rolls of curtains @ TZS 15,000
150,000
15 blankets @ TZS 8000
120,000
10 bed sheets @ TZS 12,000
120,000
Transfer to sales A/C
cr
GL
232
112,500
390,000
799,500
Date
SALES LEDGER
BAGAMWEZI A/C
Folio Amount Date Particular
DR
Particular
1/11/2020 Sales day book
Date
297,000
DR
KAKAKUONA
Particular
Folio Amount
16/11/2020 Sales day book
28/11/2020 Sales day book
Date
Particular
KARIAKOO LTD
Folio Amount Date
Particular
DR
Particular
Date
CR
Folio Amount
112,500
DR
Date
CR
Folio Amount
CR
Folio Amount
Particular
390,000
GENERAL LEDGER
SALES A/C
Folio amount Date
particular
CR
Folio Amount
799,500
30/11/2020 Sundry debtors
8. A)
DR
ADJUSTED CASH BOOK
CR
Balance b/d
274,00
Bank charge
3,200
Credit transfer
20,100
Standing order
9,300
Balance c/d
281,600
294,100
294,100
b) BANK RECONCILIATIO STATEMENT AS AT 31st DECEMBER, 2018
Start with balance as per adjusted cash book
Add: unpresented cheque
281,600
13,100
294,700
Less : uncredited cheque
(41,000)
233
Balance as per bank statement
9.
receip
ts
24,000
253700
PETTY CASH BOOK
foli
o
date
particu
lar
1/1/2021
3/1/2021
Cash
statione
ry
Ruled
paper
postage
10/1/202
1
15/1/202
1
20/1/202
1
25/1/202
1
28/1/202
1
Vouch
er no
total
1
5000
5000
2
400
400
3
5000
travelli
ng
stamp
4
2000
5
600
Benidic
tor
6
8400
21,400
21,400
45,400
24,000
31/1/202
1
31/1/202
1
cash
Balance
c/d
24,000
45,400
1/2/2021
Balance
b/d
234
posta
ge
statio
nery
Travellin
g
expenses
ledger
5000
2000
600
8400
5600
5400
2000
8400
Answers: Series No. 23
1. 1 Mark @ = 10 Marks.
i
ii
iii
iv
D
C
D
B
v
C
2. 1 Mark @ = 5 Marks.
i
ii
iii
H
F
G
vi
A
iv
B
vii
A
viii
C
ix
C
x
B
v
D
3. 2 Marks @ = 10 Marks.
i)
Statement of financial position;
Refers to the statement which shows the position of the business for a particular
period of time. It shows the main elements o the business which re assets, equity
and liabilities.
ii)
Book-keeping;
Is an art of recoding busies transactions in a se of books in terms of money or
money worth. It has the following objectives; determination of profit or loss made
by the business, fair tax assessment, business control and knowledge of credit
dealings.
iii)
Books of prime entry;
Are the books used to record transactions before they are posted to their respective
ledgers. Example of those books are purchases day book, purchases returns, sales
returns etc.
iv)
Posting;
Is the process of transferring information from the books of original entry to their
respective ledgers.
v)
Going concern concept;
This is the concept states hat “the business firm will continue to operate on its
objectives for a long period of time without ceasing.
i)
4. 2 Marks @ = 10 Marks.
Real account.
235
ii)
iii)
iv)
v)
Real account.
Nominal account.
Real account.
Personal account.
5. 1 Mark @ = 10 Marks.
ACCOUNT TO BE DEBITED
Cash account
Return inward account
Ibra account
Wages account
Stationary account
i)
ii)
iii)
iv)
v)
ACCOUNT TO BE CREDITED
Mlasi account
Kaiza account
Sales account
Bank account
Cash account
6. 2 Marks @ = 10 Marks.
Debit note.
Credit note.
Sales invoice.
Purchases invoice.
Petty cash voucher.
7. (a) 1 mark @ = 7 Marks.
DR
ADJUSTED CASH BOOK
Balance
b/d
60,000 Bank charges
balance
c/d
310,000
CR
18,000
292,000
310,000
(b) 0.75 @ = 8 Marks.
BANK RECONCILIATION STATEMENT AS A 31/3/2010
Balance as per adjusted cash book
292,000
add: Unpresented cheque
830,000
1,122,000
less: Uncredited cheque
410,000
balance as per bank statement
712,000
236
8. 0.715 @ = 15 Marks.
DR
TWO COLUMN CASH BOOK
DETAILS
CASH BANK
DETAILS
Balance
b/d
500 10,000 Mpopoka
Tego
250
Rent
Gunda
300 Wages
Makinta
120
Bank
"c"
Cash
"c"
100 Cash
"c"
Bank
"c"
200
Balance
c/d
1,070 10,400
Balance
b/d
770
8,500
9. 0.883 @ = 15 Marks.
STATEMENT OF FINANCIAL POSITION AS AT…..
DESCRIPTION
TZS
TZS
NON-CURRENT ASSETS
Machinery
33,000
Furniture
7,000
40,000
CURRENT ASSETS
Stock
37,500
Debtors
9,500
Cash
18,000
65,000
105,000
EQUITY AND LIABILITIES
Capital
56,000
Add: Net profit
10,000
66,000
Less: Dawings
2,000
64,000
LIABILITIES
NON-CURRENT LIABILITIES
Bank loan
20,000
CURRENT LIABILITIES
Creditors
21,000
105,000
237
CASH
CR
BANK
1,200
500
200
100
770
1,070
200
8,500
10,400
Answers: Series No. 27
1.
(i)
(ii)
(iii)
D
c
c
1 mark @ each= 10
(iv)
b
(v)
(vi)
(vii)
b
(viii)
c
(ix)
a
(x)
B
2.
(i)
K
1 mark @ = 05
(ii)
b
(iii)
l
(iv)
f
(v)
d
3. (a) Book keeping is an art of recording financial business transactions in the set of books
in terms of money or money’s worth
(b) Trial balance refers to the statement that shows list of debit and credit balance as
extracted from the ledger.
(c) Purchases day book refers to the book that used to record goods purchased on credit
(d) Contra entry refers to the transaction between cash and bank
(e) Double entry is the book keeping principle that calls for the recording each business
transaction twice.
2 marks @ = 10
4. (a) Income statement is the statement which prepared to determine gross profit as well as
net profit of the business entity
(b) (i) The government
(ii) Suppliers
(iii) Customers
(iv) Management
Note; There are many users here so marker does not lie on those 4 above
2 marks @= 10
5. (a) Bank reconciliation statement is a financial statement prepared to reconcile the
differences in the balance of bank column of cash book and passbook by showing all
causes of difference between the two
(b) (i) unpresented cheque
(ii) uncredited cheque
(iii) standing order
(iv) bank charges
6. (a) Government accounting refers to the process of recording and the management of all
transactions incurred by the government which includes its income and expenditures.
(b) (i) To provide required information to the government unity
(ii) To facilitate effective control and administration of public fund
(iii) To enable controller and auditor general (CAG) to exercise duties
238
7. Balance as per bank statement
Add; Uncredited cheque
Bank charge
Standing order
1450
1905
128
750
2783
4233
2830
1403
Less; Unpresented cheque
Balance as per cash book
8. (i)
DETAILS
Purchase
DR
a/c
CR
850
Suspense a/c
850
Suspense a/c
90
Karungaru a/c
90
Carriage Inward a/c
230
Carriage Outward a/c
Sales a/c
230
160
Return Inward a/c
Return Iward a/c
160
320
Suspense a/c
Suspense a/c
320
715
Cash a/c
DR
(ii)
715
SUSPENSE ACCOUNT
Karunguru
Cash
90 Purchase
715
Return Inwards
239
CR
850
320
9. (a) INCOME STATEMENT AS AT 31ST DECEMBER, 2013
Sales
28,500
Les; Return inwards
1,000
Less; Cost of sales
Opening stock
Add; purchases
+ Carriage Inward
-Return Outward
9,500
11,500
1,200
(800)
Cost of goods available for sale
27,500
11,900
21,400
Less; Closing stock
2,000
Gross profit
19,400
8,100
Add; Other Incomes
Discount allowed
3,500
Total incomes
11,600
Less; Expenses
Discount allowed
1,000
Carriage Outward
1,700
Salaries and wages
3,000
Rent and Rates
1,500
Insurance
1,000
Net profit
8,200
3,400
(b) STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2013
NON-CURRENT ASSETR
Land and building
19,000
Machinery
22,000
Motor van
16,000
CURRENT ASSETS
Debtors
9000
Bank
2000
240
57,000
Cash
3000
Stock
2000
16,000
CURRENT LIABILITIES
Creditors
17,000
Working capital
(1,000)
Capital employed
56,0000
FINNACED BY;
Capital
Add; net profit
44,800
3,400
48,200
Less; Drawings
2,200
46,000
LONG TERM LIABILITIES
Loan from CRDB
10,000
241
56,000
Answers: Series No. 28
1.
List A
List B
i
C
ii
C
iii
D
iv
C
v
B
Vi
A
vii
D
viii
B
ix
D
x
A
2.
List A
List B
i
C
ii
M
iii
E
iv
G
v
A
3. a) Cost of goods sold means the buying price of the goods being sold
b) Sales means the total value of goods sold during a particlar period for the purpose of
making profit
c) Margin this is the gross profit which is expressed interms of percentage of sales
d) Mark up this is the gross profit which is expressed interms of percentage of cost of
goods sold
e) Purchases means goods bought for sale
b) Soln
Data given: Cost of goods sold= 150000
Mark up= 40%
Sales= ?
Therefore mark up= G.P/Cogs*100
40%=x/150000*100
100x=40*1500
X=600 which is gross profit
But To change mark up into margin so as to find sales
Mark up of 40%= Margin of 2/7
2/7=600/y
2y=600*7
y=2100*100
Therefore sales amount is 210,000
242
4. Provision of financial reports to the management and owner essential to make decision
Making collective bergaining agreement especially on matters such as promotions,
ranking, and salaries to the employees
Helps the customers to assess if the source of supply is able to maintain the supply of
commodities
Government also use financial statement to collect accurate tax like TRA
Case of investors they use financial statement to assess the strenght and if there is logical
investment decision.
5. Sales, Purchases, Openong Stock, Closing Stock, Cost Of Goods Sold, Gross Profit, Net
Profit, Carriage In Ward, Carriage Outward, Expenses
6. Reasons for the customer to return goods to the supplier
>
Wrong colour
>
Out sample
>
damage in transit
>
Wrong type
>
expired
7. Dr
Adjusted cash book
Balance b/d
Direct deposit
Interest received
840000
240000
30000
1110000
784000
Balance c/d
Bank charges
Standing order
Balance b/d
Cr
36000
290000
784000
1110000
Bank reconciliation statement as at 31st december 2021
Balance as per bank statement balance method
Balance as per bank statement
792000
Add; Uncredited cheque
200000
992000
Less; Unpresented cheque
208000
Balance as per adjusted cash book
784000
8. Dr
Cash Account (1)
243
Cr
Date
Details
1/4/2015 Capital
18/4/2015 Sales
Folio Amount
2
200000
5
6000
Date
3/4/2015
4/4/2015
6/4/2015
8/4/2015
17/4/2015
19/4/2015
22/4/2015
24/4/2015
27/4/2015
28/4/2015
Details
Rent
Purchases
Postage
Drawings
Salaries
Advertising
Purchases
Furniture
Machinery
Wages
30/4/2015 Balance
206000
1/5/2015
Balance
b/d
Folio
7
3
8
9
12
13
3
14
15
16
Amount
6000
8000
1000
5000
9600
7000
18000
10000
60000
16000
c/d
57400
206000
57400
9. Dr
Suspense account
Sales
Discount received
100000
300000
400000
Cr
Balance b/d
Rent
330000
70000
40000
Statement of correcting net profit for the year ended 31st december, 2021
Net profit as per question
7900000
Add. Sales undercast
100000
Discount received undercast
300000
400000
8300000
Less. Rent underaste
70000
Reduction of sales
360000
Corrected net profit
430000
7870000
244
Answers: Series No. 29
1.
i
C
ii
C
iii
A
iv
D
v
B
2.
i
H
ii
M
iii
O
iv
N
v
I
3.
vi
A
vii
D
viii
A
ix
A
x
C
i) Dishonouredcheque
ii) Bank charges
iii) Standing order
iv) Credit transfer
v) Unpresented cheque
ASSETS
i. 157,000
ii. 335,500
iii. 273,100
iv. 415,800
v. 205,000
CAPITAL
86,500
247,000
209,600
281,500
176,200
5.
i.Credit worthness of the company
ii.Fair tax assasment
iiiDetermination of profit
iv.Comparison reason
v.Bussiness control
6.
.i.Goods are in wrong colour
ii.Goods are in wrong type
iii.Dissatisfaction quality
iv.Goods are fault
v.Goods are damaged
DR
LIABILITIES
68,500
88,500
63,500
134,300
28,800
Adjusted cash book
Balanced b/d 72,820
CR
Standing order 25,000
Bank charges
9,000
Balance b/d
38,820
72820
72,820
7. (a)
245
4.
(b) BANK RECONCILIATION STATEMENT ASAT 30TH APRIL 2021
Balance as per Adjusted cash book 38820
Add: Ur represented chaque: Kanyaru 42,380
Sadara 50,480
92,860
131,680
Less; Uncredited cheque (6960)
Balance as per bank statement
124,720.
8.
EDVINA
SALES DAY BOOK
Month
Date
Particular
April
1
Salama
10 dozen of vitenge @ 8,000
25 dozen of khanga @ 10,000
Bujiku
100 pairs of shoes @ 2,000
200 pairs of boot @ 3,000
Mkwema
100 dozen of exercise @ 3,000
200 reams of papers @ 1,500
Mwakalenge
Goods worth @ 5000
Mikumi bookstore
200 advanced learner’s dictionary
@ 2,500
800 fiction books @500
5
12
15
22
April
Foli
o
30
Invoice detail
Invoice total
80,000
250,000
330,000
200,000
600,000
800,000
300,000
300,000
600,000
5000
5,000
500,000
400,000
900,000
2,635,000
GL
9. (a) INCOME STATEMENT AS AT 31ST DECEMBER 2012
DETAILS
TSHS
TSHS
Sales
328,300
Less sales return
1200
Net sales
Less: cost of goods sold
Opening stock
37,900
Add: purchases
157,000
Add: carriage inwards
5000
157,900
Less: return outward
(3100)
Net purchases
154,800
246
TSHS
327,100
Cost of goods available of sale
Less: closing stock
Less: goods sold
Gross profit
Add: income: Rent received
192,700
(30,300)
(162,400)
164,700
54,00
170,100
Less: Expenses
Carriage outwards
Wages and salaries
Advertising
Total expenses
Net profit
b.
DETAILS
FIXED ASSET
Premises
Fixture and fitting
Total fixed asset
CURRENT ASSETS
Stock
Debtor
Cash at bank
Cash at hand
Total current asset
Less: CURRENT LIABILITIES
Creditors
Working capital
Capital employed
FINANCED BY
Capital
Add: net profit
Less: drawings
Capital employed
1400
93,100
11800
(106,300)
63,800
TSHS
TSHS
TSHS
380,000
105,000
485,000
22,400
30,300
20,100
600
73,400
(18,700)
54,700
539,700
549,500
63,800
613,300
(73,600)
539,700
247