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 4 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) 5 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 7 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 9 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 11 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 12 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 14 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