BK Form II Format 2022

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 Yemen Secondary School
Ombeni Mnyusa St. Monica Moshono Girls Secondary School
Mohamed Lawa Ibugule Secondary School
Muhajir Bwikizo Matangini Islamic High School
Msadiko Misango Simiyu Secondary School
Kasto Shonde Rainbow Christian Secondary School
Shomari Shaban Mudio Islamic Seminary
Gwakisa Mwasumbi Jifunzeni Secondary School
Wilson Lupembela Kingcollins Secondary School
Milly Ruth St. Peter Claver High School
Lusekelo Kalulunga Ilasi High School
Athuman Rashid Chinangali Secondary School
Eddah Luckson Rau Secondary School
Vumilia Samson Faraja Seminary
Hassan Hamis Feza Boys Secondary School
Robert M. Mwangoka Star Secondary school
Zaina M. Mbega Dar Es Salaam Islamic Secondary
Paschal Sechambo Rashid Mfaume Kawawa Secondary
Manyanya M. Manyanya Canossa Secondary School
Salvatory Ephraim Acacia Secondary School
Shakiru Bashiru Kashai Secondary School
Iddy J. Upatu Haradali Winners Secondary school
Ritha N. Richard Elerai Secodary school
Faith Tamiila Nyakumbu Girls Secondary School
Polician Kalambo St. Leonard Co Education Secondary School
Eliya Machage Kitungwa Secondary School
Halima H. Tindwa Chamazi Day Secondary School
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.
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
Series No. 29...........................................................................................................................................133

Answers: Series No. 1............................................................................................................................137
Answers: Series No. 10..........................................................................................................................172
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
(viii) If expenses exceeds the gross profit, the result will be:-
a. Net profit
b. Net loss
c. Net expenses
d. Net gross profit
(ix) Purchases journal, sometimes is called……………
a. Credit purchases
b. Purchases Day Book
c. Purchases returns journal
d. Cash purchases
(x) Which of the following is a liability?
a. Debtors
b. Buildings
c. Cass in hand
d. Creditors
(i) (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
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 ASSETS LIABILITIES CAPITAL

1 72,000 10,000 =
2 144,000 = 88,000
3 = 100,000 30,000
4 20,000 5,400 =
5 = 42,200 80,000
6 100,000 = 65,000
7 = 37,000 44,000
8 500,000 410,000 =
9 36,000 = 12,000
10 22,000 = 5,000
6
5. Complete the following table by indicating the account to be debited and the account to
be credited from each transaction.
S/N Transactions Account to be Account to be

Debited Credited
E.g: Rent paid for cash Rent account Cash account
(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
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
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
Cash 6,300
Sales 48,000
Bank 9,000
Van 75,000
Premises 125,000
Capital 250,000
Purchases 62,000
H. James – A Debtor 4,100
Returns outwards 8,400
T. Chama – A Creditor 12,700
Office Equipment 31,100
Returns inwards 6,600
8
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
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 GROUP B
i. These are payments made by a firm or person through cheque but A. Standing order
they are not yet sent by customers to the bank to effect those B. Dishonored cheques
payments. C. Unpresented cheques
ii. These are payments received by a firm or person by cheque but they D. Errors
are not yet passed through the banking system. E. Unaccredited cheques
iii. These are fees deducted by the bank for different services made on F. Dividends
the current account. G. Direct transfers
iv. These are payments made by the customer firm direct to the bank H. Bank charges
account of supplier firm.
v. These are payments directed by the account holder to be made by the
bank on his behalf.
10
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 ACCOUNT RTO BE

DEBITED 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
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
Closing stock 31st 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
9. The following information were extracted from ABC traders as at 30th june 2018
S/N NAME OF ACCOUNT DR CR

1 Stock at 1.january.2018 3,249
2 Stock .31/12/2018 2,548
3 Purchases 11,380
4 Sales 18,462
5 Motor expenses 520
6 Salaries 150
7 Rent and rates 670
8 Insurance 111
9 General expenses 105
10 Premises 1500
11 Motor vehicle 1200
12 Debtors 1950
13 Creditors 1,538
14 Cash at bank 1,654
15 Cash in hands 2,040
16 Drawings 895
17 Capital 5,424
25,479 27,917
REQUIRED: Re-draft the above trial balance
13
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 C General ledger
D Statement of financial position
(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
14
D Credit transactions
(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 Column B
i. The transaction is posted in the wrong class of account Errors of complete reversal
ii. Errors that cancel out each other. Over casting errors
iii. Incorrect figure is entered in the books of account. Errors of original entry
iv. Occurs when incorrect adding up column of figures gives Single entry errors
an answer which is greater than it should be Errors of principle
v. Occurs when making an entry on only one side of the Compensating errors
account Under casting errors
Errors of commission
ANSWER
Column A i ii iii iv V
Column B
SECTION B (40 Marks)

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).…………………………………………………………………………………………
15
(iii). …………………………………………………………………………………………
(iv). …………………………………………………………………………………………
(v). …………………………………………………………………………………………
5. 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 KC COY.
Iv Cash received from DUBAI COY
V 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)

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
16
(ii) Post the items to the suppliers’ account
(iii) Transfer the total to the purchases account
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
17
Rent…………………………………………………………Tshs 3,000
General expenses amounted to………………………………Tshs 6,000
Required: Prepare income statement for the year ended 31st December 2018.
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
18
C. A discount given to suppliers
D. A discount given to encourage bulk purchasing.
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.
Column A Column B
(i) The concept which separates business affairs A. Accounting period concept
from business ownership.
B. Accrual concept
(ii) The concept which assumes that business
operations will continue for a long period of C. Business entity concept
time without ceasing.
D. Dual aspect concept
(iii) The concept which relates expenses incurred
during the accounting period with the revenue E. Matching concept
recognized during the same period.
F. Going concern concept
(iv) The period of time that covers a certain
accounting functions being monthly, quarterly G. Accounting principles.
half year or annually.
H. Money measurement
(v) A set of rules that are universal applied and principle.
followed by an organization when reporting
financial information.
19
SECTION B (40 Marks).

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.
20
May 25: Invoice issued to Korushusho for goods sold Tshs. 9,000.
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).

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
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
Series No. 05
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) 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 Realization concept
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
A. Inventory, trade receivable, bank, cash.
B. Cash, bank, trade receivable, inventory.
C. Trade receivable, stock, bank, cash.
D. Inventory, ttrade receivable, cash, bank
(x) 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 correct response beside the item number.
Group A Group B
(i). The transaction is posted in the wrong class of account A. Errors of complete reversal
(ii). Correct amount is posted in the correct class of account but in B. Errors of original entry
the wrong person’s account.
C. Errors of recording
(iii). Errors that cancel out each other.
(iv). Occurs when a transaction is completely omitted from the D. Errors of principle
book.
E. Compensating errors
(v). Occurs when the wrong sequence of the individual
characters within a number are entered. F. Transposition errors.
G. Errors of commission
H. Errors of omission
ANSWER
Group A I ii iii iv v
Group B

3. a. Complete the following table by showing accounts to be debited and which to be
credited.
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
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.

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.
25
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:
Tshs
Cash at Bank 4,000
Stock 20,000
Debtors: Feisal Salum 2,000
Kisinda 1,000
Creditor: Mayele 1,000
Motor-van 7,000
Premises 30,000
Furniture 8,000
Capital 70,000
January1 Drew Cash from Bank for office use 500

4 Kisinda paid his account by cash in full and allowed discount of 200
6 Paid Mayele by cheque in full settlement of account 980
7 Sold goods on credits to Manyika 10,000
8 Feisal Salum paid his account by cheque in full and was allowed discount of 100
10 Purchased motor van from Saido 12,000
12 Purchased good on credit from Mayele 2,000
18 Sold goods on credit to Feisal Salum 5,000
20 General expenses in cash 100
24 Withdrew cheque for personal use 500
Enter the above transactions in the three Column cash book and balance it.
26
9. The following information relates to Mwagamwaga sokoni traders as at 31/12/2018
Tshs
Stock 1st January 2008 was 70,000
Purchases amounted to 350,000
Stock on 31st December 2018 was valued at 50,000
Sales during the years was 620,000
Carriage on purchases 15,000
Return on sales 12,000
Return on purchases was 5,000
Sales and wages 11,000
Electricity 7,000
Commission received 10,000
Discount allowed 4,000
General expenses amounted to 6,000
Required: prepare income statement for the year ended 31st December, 2018.
27
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. 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
viii. Which of the following statements is not correct?
A. Assets – Capital = Liabilities
B. Liabilities + Capital = Assets
C. Assets – Liabilities = Capital
D. Liabilities-capital = assets
ix. Which of the following is a liability?
A. Machinery
B. Motor vehicles
C. Account payable for goods
D. Cash at bank
x. 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 NAME OF ACCOUNT CLASS OF ACCOUNT

i Land
ii Debtor
iii Advertising
iv Cash
v Machinery
vi Rent
vii Purchases
viii Stock
ix Sales
x Creditors
30
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:
31
Prepare the income statement for the year ended 31st December 2014.
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
32
B. Excess of the current assets over current liabilities
C. Amount of capital invested by the proprietor
D. Capital less drawings
(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)

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
33
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.
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.

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 TZS
1st April Started business with capital in cash 200,000
2nd April Paid rent by cash 46,000
3rd April Adolf lent Mzamza and paid directly into her bank account 400,000
4th April Mzamza paid Nyanza by cheque 172,000
5th April Cash sales 38,000
7th April Pendo paid Mzamza 68,000
9th April Mzamza paid Kitambi in cash 184,000
11th April Cash sales paid direct into bank 302,000
15th April P. Mkota paid Mzamza in cash 192,000
16th April Mzamza took out of cash till and paid it into the bank 20,000
account
19th April Mzamza repaid Kapiga by cheque 100,000
22th April Cash sales paid direct into the bank 24,400
26th April Paid motor expenses by cheque 15,000
30th April Withdrew cash from the bank for business use 40,000
30th APril Paid wages in cash 64,000
8. Luanda provision store had the following balances on 1st May 2017
Cash Tshs. 29,000

Bank Tshs. 654,000
Debtors: Creditors
K. Ochola 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
34
May 15: paid wages in cash Tsh. 90,000
May 20: J. Mango paid his account in cash deducting 2.5% cash discount
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, A. Dual aspect
which 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 E. Double entry
its 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
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.

debited credited
Payment for rent in cash Rent account Cash account
i Bought goods for cash
ii Paid transport charges in cash
iii Sold goods for cash
iv Paid wages in cash
v Bought furniture for cash
(b) Identify whether the following accounts are nominal, real or personal.
S/N NAME OF ACCOUNT CLASS OF ACCOUNT

i Land
ii Debtor
iii Advertising
iv Cash
v Machinery repair
6. Show where the original information in the books of prime entry are to be found:
38
Books of prime entry Document / Source of information
Eg: Sales Journal Answer : Sales Invoices
i. Purchases Journal
ii. Return inwards Journal
iii. Return outwards Journal
iv. Cash book
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 Date Particulars Folio Amount
1998 2,44 1998 51,97
3-Mar Ndendesi, F. 0 1Mar Balance b/f 0
21Mar Kulwa, A 3,330 6-Mar M. Tabu 1,220
31-Mar Hamis, s. 1,600 J. Bakari 2,080
30Mar J. Shoo
31-Mar 4,900
30Mar
c/d 52,800
Balance
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
39
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 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.
41
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.
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 List B
i. The business is believed to continue in A. Going concern
existence in the near foreseeable future. concept.
ii. When recording the transactions of the B. The concept of
business, private transactions of the owner are business entity
excluded C. Matching concept
iii. Assets and liabilities of the business are D. Historical cost concept
recorded at their acquisition cost in the books E. Accrual concept
of account regardless of their current market F. Money measurement
value concept
42
iv. Transactions are recorded twice in the books of G. Duality concept
account H. Prudence concept.
v. The transactions recorded in the books of
account are quantified into monetary terms.
Answers
Column A i ii iii iv v
Column B
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.
43
Date detail folio cash bank date detail folio cash Bank
1/2 Balance b/d 50,000 1/2 Balance b/d 100,000

2/2 sales 10,000 2/2 wages 10,000
3/2 Rent 10,000 2/4 sales 75,000
4/2 Jayden 15,000 2/5 shalom 30,000
(creditor) (debtor)
6/2 drawings 10,000 7/2 capital 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.
1 st
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 -10 steel rods at 10,000/=@

-15 paint brush at 5,000/=@
-4 rollers at 10,000/=
- less 10% cash discount in 2 weeks
7th Britney - 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
44
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.
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 Brenda 50,000 March 2nd Purchases 80,000
March 10th Peron 30,000 March 6th Elly 41,000
March 15th Ambrose 57,000 March 9th Roy 4,000
March 16th Immy 46,000 March 31st balance c/d 53,000
March 19th Rose 25,000
______
________
248,000 248,000
Bank statement
Date Details Debit Credit Balance
March 1st Balance b/d 70,000 dr
March 3rd Purchases 80,000 150,000 dr
March 5th Sales 40,000 110,000 dr
March10th Dividends 10,000 100,000 dr.
March 10th Tanesco 20,000 120,000 dr.
March 12th Credit transfer 80,000 40,000 dr.
March 17th Peron 30,000 10,000 dr.
March 17th Ambrose 57,000 47,000 cr.
March 31st Bank charges 17,000 30,000 cr
March 31st Interest 5,000 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

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. 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. ( )
iv. A petty cash book is used for recording;
A. Cash payments. C. Bank payments.
B. Small cash payments. D. Small bank payments. ( )
v. 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. ( )
46
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?
A. TZS. 25,000/= . C. TZS. 45,000/=.
B. TZS. 40,000/=. D. TZS. 80,000/=. ( )
vii. The cash or goods taken out of the business for private uses are known as;
A. Capital. C. Assets.
B. Profit. D. Drawings. ( )
viii. Whenever cost of goods sold is greater than sales the outcomes present;
A. Gross loss. C. Net profit.
B. Gross profit. D. Net loss.
ix. 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 LIST B
i. A book of prime entry used to record all transactions A. An invoice.
which cannot be recorded in any other books of B. Journal proper.
prime entry. C. Debit note.
ii. The part of books of prime entry used to record D. Petty cash book.
many small payments and of high frequency made in E. Sales journal.
cash. F. Cash book.
iii. A book of prime entry used to record all goods G. Purchases journal
bought on credit.
iv. A document which provides information necessary
for recording transactions in sales day book.
v. A book of prime entry which is used to record all
receipts and payments.
Items i ii iii iv V
47
Answer

3. Mention five (5) sources of government revenue.
a) ____________________________________
b) ____________________________________
c) ____________________________________
d) ____________________________________
e) ____________________________________
4. For each of the items (i) – (v) compute the missing figure and write them in the space provided;
S/NO ASSETS CAPITAL LIABILITIES
(i) 25,000 10,970 _____________
(ii) _____________ 10,000 11,900
(iii) 39,000 _____________ 11,930
(iv) 25,600 17,900 _____________
(v) ____________ 17,500 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 ______________________, Cr ________________________
ii. Received cash from Asha.
Dr ______________________, Cr ________________________
iii. Paid rent by cheque.
Dr ______________________, Cr ________________________
48
iv. Withdrew cash from bank for office use.
Dr ______________________, Cr ________________________
v. Paid a creditor, Mr. Madai by cash.
Dr ______________________, Cr ________________________

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: Transport Tzs, 18,000/=, Meals Tzs. 7,500/=, Stationery Tzs. 1,000.
2: 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 CR
49
Times Details Folio Amount Date Details Folio Amount
2020 2020
01/12 Balance b/d 174,000 08/12 A. Dylan 34,900
07/12 T.J. Master 8,800 15/12 R. Mason 3,300
22/12 J. Ellis 7,300 28/12 G. Small 11,500
31/12 K. Wood 24,900 31/12 Balance c/d 183,100
31/12 M. Barret 17,800
232,800 232,800
1/1/2021 Balance b/d 183,100
BANK STATEMENT
Date Details Dr Cr Balance
2020
01/12 Balance b/d 174,000
07/12 Cheque 8,800 182,800
11/12 Dylan 34,900 147,900
20/12 R. Mason 3,300 144,600
22/12 Cheque 7,300 151,900
31/12 Credit transfer 5,400 157,300
31/12 Bank charges 2,200 155,100
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?
51
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
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
52
C. Debtors
D. Premises ( )
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.
53
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.

debited credited
Payment for rent in cash Rent Account Cash Account
(i) Bought goods for cash
(ii) Paid transport charge in cash
(iii) Sold goods to Amina
(iv) Paid wages by cheque
(v) Bought furniture from Kidawa
6. For each of the items (i) – (x), compute the missing amounts and write them in the space provided.
(a) Assets Liabilities Capital

i. 16,000 …………….. 8,500
ii. …………. 8,850 24,000
iii. 27,300 6,500 ………….
iv. …………. 13,400 38,400
v. 20,500 …………….. 17,300
(b) Sales Cost of sales Gross profit

(i) ………… 26,000 14,000
(ii) 92,000 ………… 48,000
(iii) 130,000 115,000 …………
(iv) ………… 156,000 24,000
(v) 95,000 …………… 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.
54
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.
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 Debit Credit

Capital 70,000
Stock 25,000
Purchases and Sales 55,000 80,000
Insurance 2,500
Sundry Debtors and Creditors 12,000 26,100
Rent 12,000
Wages and Salaries 18,000
Lorry 15,000
Furniture 10,000
General expenses 10,500
Cash at Bank 20,600
TOTAL 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

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
56
(iv) Which of the following is nominal account?
(a) Bank account
(b) Debtors account
(c) Furniture account
(d) Motor running expenses
(e) Bank overdraft
(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
57
(a) We owe for goods
(b) Depreciation
(c) Premises
(d) Loan to hamisi
(e) Cash at bank
(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 LIST B
i. Are ledgers contain supplies personal account? A. General ledger
ii. Are ledgers contain customer’s personal account. B. Private ledger
iii. Are ledger contains real and nominal account. C. Sales ledger
iv. Are ledgers contain the capital and drawing D. Cash book
accounts E. Purchase ledger
v. Are ledgers contain cash account and bank F. Personal ledger
account. G. Impersonal ledger

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 Name of account Classification of account
(i) Motor vehicle
(ii) Discount received
(iii) Judith ally
(iv) Fixtures and fittings
58
(v) Sales
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
(e) Cash transaction
6. (a) Mention five (5) reasons for studying bookkeeping.
(b) Five (5) examples of transaction

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 Dr Cr
Capital 15,000
Drawings 2,410
Purchases 44,280
59
Sales 69,470
Cash at bank 2,780
Returns inward 1,200
Returns outward 980
Furniture 2,000
Motor vehicles 5,000
Salaries 14,880
Carriage inward 1,920
Rent 370
Insurance 870
Stock 01st 6,290
Carriage outward 380
Advertising 1,210
Cash in hand 120
Discount received 550
Debtors and creditors 6,000 4,000
NB: stock at 31st December 2019 was 7,360
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 31 st 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 30,000
Madenge 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 31 st 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
60
Required:
Prepare the bank reconciliation statement starting with an overdraft as per bank statement.
Series No. 13

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) 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
v) 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
vi) How much is to be reimbursed if a petty cashier has spent Tsh.189,00/=while his cash float is
Tsh.200,000/=
61
A. Tsh 11,000/= B. Tsh 389,000/=
C. Tsh 189,000/= D. Tsh 200,000/=
vii) 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
viii) 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
ix) 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
x) 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
I II II IV V VI VII VIII IX X
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 I II III IV V VI VII VIII IX X
COLUMN B
SECTION B. (40 Marks)
62
3. Define the following book keeping terms
i) Contra entry
ii) Trial balance.
iii) Subsidiary books
iv) Credit transactions
v) Ledger
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 ASSETS CAPITAL

Tshs. 65,500 Tshs……………. Tshs. 105,000
Tshs………….. Tshs. 275,000 Tshs. 125,000
Tshs. 75,510 Tshs…………….. Tshs. 350,450
Tshs. 70,000 Tshs. 160,000 Tshs…………
Tshs………….. Tshs. 250,000 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) ____________________________________________________________________

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
63
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.
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 DR CR
Capital 776,000
Stock as at 1.7.2016 164,800
Purchases and sales 1,656,000 2,205,600
Sundry debtors and creditors 290,000 154,400
Insurance 20,400
Drawings 184,000
Sales returns and Purchases returns 4,800 4,000
Salaries and wages 324,800
Motor van 250,000
Electricity bills 30,000
Bad debts 19,200
Discounts allowed and received 42,000 47,200
Rent and rates 9,600
64
3,187,200 3,187,200
Stock at 30 June 2017 was valued at TZS 201,600
th
Required:
Using the information above, prepare Income statement for year ended 30th June 2017.
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?
Accounts to be debited Accounts to be credited
A Customer Purchase returns
B Customer Sales returns
C Purchase returns Customer
D Sales returns Customer
iii. 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
65
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
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
66
2. Match the items in column A with corresponding items in column B, write the letter in the boxes
provided
COLUMN A COLUMN B
i. Withdrew cash from bank for business A. Error of omission
purposes. B. Current liabilities
ii. Mistakes that committed in recording C. Trade discount
business transactions. D. Errors
iii. Sold goods to Kishada TZS 2,000, but E. Contra entry transaction
not recorded in the books. F. General journal
iv. Bought goods from Allawi. G. Credit transaction
v. Allowance given to customers when
goods are sold in bulk.
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
67
6. Briefly explain five importance of maintaining petty cash book
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
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
Buildings 300,000
Capital 710,000
Sundry creditors 63,000
Furniture 75,000
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
68
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.
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

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
70
(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
(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..................................................
71
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
GROUP B
A. Errors
B. Dividend
C. Uncredited cheque
D. Unpresented cheque
E. Direct deposit
F. Bank Charges
G. Bank
Answers
GROUP A (i) (ii) (iii) (iv) (v)
GROUP B
(05marks)
3. a) In brief explain the following accounting concepts:-

i Business entity concept
ii Going concept concept (06 marks)
iii Money measurement
b) Explain any two advantages of Bank Reconciliation.
(04marks)
4. Complete the following table.
Transaction Document Book of Ledger Name o of the

issued original entry accounts involved
Sold goods on credit
i to Latifa …………… ……………… ………… …………………
….... ……… ……… ……
……………… ………… …………………
…….. …….. …..
Goods returned by
ii us to supplier. …………… ……………… ………… …………………
….... ……… ……… ……
……………… ………… …………………
72
……… ……… ……
(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
(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. (10marks)
(iv) Received cash for rent.
(v) Owner withdraws cash from

business for personal use.
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
73
a) Adjusted cash book
b) Bank reconciliation statement starting with the balance as per adjusted cash book
(15marks)
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 14, purchased envelops TZS 2,280
February 20, paid cash to J. Mureithi a creditor, TZS 4,160
February 21, purchased stationery TZS 2,750
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.
74
Required;-
- Show the requisite journal entries to correct the errors
- Write the suspense account showing the correction of the errors
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
75
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
A.Duty B. Reward C. Profit D. Interest
(xii) 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
(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) 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
(xv) 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 1 July ends to 30
st th
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
76
(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)
77
5. From the following table you are required to complete the empty gaps with the correct figures:
LIABILITIES ASSETS CAPITAL

(a) Tshs. 65,500 Tshs……………. 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
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.
78
(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.
(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
Purchases 72,000
Return outwards 1,500
Stock at start 01/01/2017 12,000
Stock at close 31/12/2017 7,500
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
Cash 15,300
Sales 48,000
Van 75,000
Capital 250,000
Purchases 62,000
H. James – A Debtor 4,100
Office Equipment 156,100
(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.
79
Series No. 17
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 C. Three entry system

B. Double 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
B) Cash account D. Goods account

iv) Is where both the debit and credit entries are shown within the cash book
A. Contra entry C. Contra system
B. Control entry D) Control system
v) 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
vi) Carriage inward is charged to the Trading account because:
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
vii) 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 B. Sh. 700 C. Sh. 541 D. Sh 1,400
x) 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
80
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 GROUP B.
(i) Refer to the stock available at the beginning of A. Closing inventory

the business. B. Float
(ii) The cost of goods purchased plus carriage C. Business
inward less return outward. D. Net purchases
(iii) The amount of money at which a petty cashier E. Opening inventory
start with each period F. Working capital
(iv) Any legal activity undertaken for the purpose G. Net profit
of making profit H. Carriage on sale
(v) Transport cost for the goods to customer.
ANSWERS
GROUP A i ii Iii iv V
GROUP B
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
81
6. Complete the following table
S/N TRANSACTION BOOK OF ORIGINAL SOURCE DOCUMENT

ENTRY
Example: Credit sales of fixed General journal Invoice
asset
i. Credit purchase of goods meant
for resale
………………………….. ………………………
ii.
……………………. Returns inwards journal ………………………
iii. Purchases returns …………………………… ………………………
iv. ……………………. Sales day book ………………………
v. Credit purchases of fixed asset

………………………… ………………………
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
82
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 Particular Folio Amount

1/1/2010 Capital 100,000 1/1/2010 Purchases 35,000
3/1/2010 Sales 80,000 5/1/2010 Purchases 50,000
18/1/2010 Sales 42,000 10/1/2010 Furniture 25,000
31/1/2010 Balance c/d 110,000
220,000 220,000
1/2/2010 Balance b/d 110,000
83
Series No. 18

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 viii ix x
84
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 ii iii iv v
LIST B
SECTION B: (40 Marks)

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 Class of Account
i Creditor
ii Sales
iii Stock
Iv Purchases
85
V Rent
Vi Machinery
Vii Cash
Viii Advertising
Ix Debtors
X Land
SECTION C: (45 Marks)

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 30 th May 2016, prepare
the statement of financial position as at that date.
AMOUN
TS (Tshs)
DETAILS
Furniture and fittings 180,000
Capital 1,140,000
Stock 180,000
Debtors 312,000
Net profit 656,000
Land and buildings 848,000
Cash in hand 50,000
Drawings 286,000
Creditors 160,000
86
9. While extracting a trial balance of Susu Company limited as at 31 st 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.
87
Series No. 19
1. For each of the items (i) – (x) choose the correct answer from among the given(10marks)
alternatives.
i) 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
ii) 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.
iii) …….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.
iv) is the statement which present the relationship between assets ,capital and liability.
A) capital B) book keeping
C) rent D) accounting equation
v) State that every transaction has two aspects

A) Dual aspect B) Deducted from asset
C) separate entity concept D) Deducted from capital
vi) Credit side is

A) Left hand side B) transaction
C) Right hand side D) b and c
vii buy bag for tsh 6000 is example of …

A) drawings B) sale
C) transaction D) Proprietor Account
88
viii) Is the tangible article which commodity deal
A) Fixed capital B) Long term liability
C) Current asset D) Goods
ix) Which of the following is main book of accounts?

A) Ledger B) sale
C) cash book D) Folio column
x) 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 C. Historical cost concept
they 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.
89
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
1 Stock at 1st 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 4 : Paid to Happy by cheque Tshs. 710 being in full settlement of debts of Tshs. 750 less sh.40
th
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
90
Show discounts general ledger.
9. The following cash book of ELINA GENERAL SUPPLIER, (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 Moon luck 12,750 8.3.2018 M.Kibicho 16,750
3.3.2018 Cheque –Masinde 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 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
91
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. TZS 90,000
B. TZS 107,500
C. TZS 112,500
D. 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
92
(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. TZS 230000
B. TZS 390000
C. TZS 490000
D. 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. TZS 1,150,000 credit

B. TZS 1,150,000 debit
C. TZS 1,550,000 credit
D. TZS 1,550,000 debit
(vii) A suspense account is opened whenever:
A. The trial balance totals agree.
B. The trial balance totals do not agree.
C. The statement of financial position totals agree.
D. The statement of profit or loss totals do not agree.
(viii) The expenditure for which the government has received no value is called:
A. 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
93
D. An unpresented cheque.
(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
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 (A) Receiver of revenue
be 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
(G) Controller and Auditor
appointed by the treasury in writing and
General
charged with the duties and 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) (iv) (v)
LIST B
94
SECTION B: 40 MARKS
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 CLASSIFICATION

i. Wages and salaries
ii. Discount allowed
iii. Juma and Co. Ltd
iv. Fixtures and fittings
v. Insurance
5. Complete the following table showing which accounts to be debited and which are to be credited.
S/N TRANSACTION ACCOUNT TO BE ACCOUNT TO

DEBITED BE CREDITED
(i) Purchased equipment from ODDO on
credit
(ii) Returned to ODDO some of the
equipment bought from him
(iii) The proprietor, MAGU paid in a
cheque from his private funds.
95
(iv) Paid cash into bank
(v) Rent received in cash
6. Determines the figures represented by A, B, C, D and E in the table below. Working must be shown
clearly.
NON - CURRENT LONG TERM SHORT TERM OWNER’S

CURRENT ASSETS LIABILITIES LIABILITIES EQUITY
ASSETS
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
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 31 st 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/=
96
REQUIRED:
a) Show the journal entries necessary to correct the errors

b) Show up the suspense account after the errors described have been corrected
9. The trial balance below belongs to MALIAN CO. LTD of Magomeni, for the year ended 31st December
2020
PARTICULARS DEBIT(TZS) CREDIT(TZS)

Inventory 1st 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 outward 170,000
Returns 100,000 80,000
Motor van 1,600,000
Account Receivables 1,400,000
Account Payables 1,700,000
Rent and Rates 150,000
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
97
Series No. 21
SECTION A (15)
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
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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
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)
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
Cost of goods sold (TSHS) Sales (TSHS) Gross profit* Gross loss
A. 9,820 10,676
B 7,530 14,307
C 10,500 19,370
D 9,580 9,350
E 8,760 17,200
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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.
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 4000
B. Benhim 3000
J. Malthus 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
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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.
9. The following bank statement was received by MR. MKETO, a trader on 31st December 1996
BANK STATEMENT
Date Particular DR CR BALANCE

2008
MARCH 01 Balance 51970 DR
08 Ndimbwa 1220 53190 DR
16 Cheque 2440 50750 DR
20 J. Ramadhani 2080 52830 DR
Cheque 3330 49500 DR
Transfer credit 570 48930 DR
Standing order 490 49420 DR
Bank charge 280 49700 DR
The following cash book is also available
DATE PARTICULAR FOLIO AMOUNT DATE PARTICULAR FOLIO AMOUNT

2008 2008
March03 F.Eid 2440 March 01 Balance Bd 51970
March 21 Kulwa 3330 March 06 Ndimbwa 1220
March 31 Hamis 1600 March 30 J.Ramadhani 2080
March 31 Balance cd 52800 March 30 Abuu Nasra 4900
60170 60170
CASH BOOK (BANK COLUMN)
Required, Prepare the bank reconciliation statement as at 31st march 2008, starting with the balance as per cash
book (do not adjust the cash book).
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Series No. 22
SECTION A (15 marks)

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
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D) The total amount received at the end of the period
vii. At which ledger are supplier personal accounts founding

A) Nominal ledger C) Purchases ledger
B) General ledger D) Sales ledger
viii. The document used to deposit money in the bank is known as

A) Bank pay -in –slip C) Cheque
B) Bank statement D) Payment voucher
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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.
iii. The period which begins on 1 july of the current
st
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

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.
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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 ACCOUNT TO BE

DEBITED 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)

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
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28. 2012. Received cash from Samweli, less 4% discount … 2,500
30. 2012. Paid wages in cash ……….…………………… 1,300
8. The following balances were extracted from the books of Kipande company
Cash in hand 50,000
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
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Series No. 23
1. For each of the following items write the letter of the correct answer in the answer sheet
provided. (10%)
i. 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.
ii. 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.
iii. 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
iv. 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
v. 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
vi. 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.
vii. 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
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F. Money saved for business start up
G. Money saved for building a private house
H. Cash received from the sales of shares
viii. 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/=
ix. 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 general
Tanzania (b) Paymaster general
(iii) A person appointed by the treasury in writing and charged (c) Ambit of vote
with the duty of regulating funding issues from the (d) Nugatory expenditure
exchequer account (e) Exchequer account
(iv) Fund which is segregated for specific activities of the (f) Virement
government (g) Special fund
(v) An authority granted by one minister to another one access (h) Collector of revenue
of funds when the formal is replaced by letter.
108
3. Complete the following table by indicating the account to be debited and the account to
be credited from each transaction. (10%)

Debited Credited
E.g: Insurance paid for cash Insurance account Cash account
(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
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 __________________________________________
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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

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%)
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8. Prince, a wholesaler, made the following sales during the month of April 2021:
April 1. Sold goods to Junior:
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:
200 advanced leaner’s dictionaries at TZS 2,500 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
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General expenses amounted to ……………………………………….. Tsh. 6,000
Required:
Prepare Maro Traders Ltd.’s Income Statement for the year ended 31st December 2019.
Series No. 24

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. The cash account

B. The capital accounts
C. Suspense account
D. 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. 20%
B. 25%
C. 50%
D. 75%
iii) Posting in book-keeping means
A. Making the first entry of double entry transaction

B. Entering items in a cash book
C. Making the second entry of double entry transaction
D. Making entries in different books
iv) Which of the following is not an Asset
A. Loan to some body

B. Bank overdraft
C. Cash borrowed from some body
D. 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.
112
A. Tshs 857
B. Tshs 910
C. Tshs 915
D. Tshs 810
vi) An error caused by debiting Salma’s account instead of Salma’s account is called
A. Error of original entry

B. Error of omission
C. Error of complete reversal
D. Error of commission
vii) The two types of discounts are
A. Cash discount and credit discount

B. Cash discount and trade discount
C. Discount allowed and Discount received
D. Cash discount and bank discount
viii) The value of closing inventories is found by
A. Adding opening stock to purchases

B. Deducting purchases form opening stock
C. Doing a stock taking
D. 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
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i. Refers to the process of rectifying the difference A. Imprest system
between bank statement and cash book B. Cash book
ii. The amount of money which a petty casher start C. Petty cash book
with each period D. Float
iii. Is a system in which refund is made to the total E. Bank reconciliation
paid out in a period so that the float can retain to statement
it’s a greed level. F. Petty cash expenditure
iv. Is the person who is responsible for petty cash G. Petty cashier
book H. Bank reconciliation
v. Book of original entry used to record prompt
receipts and payment

Answer ALL questions.
3. Differentiate the following terms as used in bookkeeping
a) Contra entry and double entry system

b) Error of omission and error of commission
c) Development expenditure and revenue expenditure
d) Carriage inward and carriage out ward
e) 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/=
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
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(i) Trade discount
(ii) Invoice price
(iii) Cash discount
(iv) Amount to be paid by mwaisaka.

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
S/NO F NAME OF ACCOUNT DR CR
1 Capital and Drawings 1500 7200

2 Purchases and Sales 2538 5650
3 Returns 650 60
4 Carriage on Purchases 22
5 Premises 1000
6 Stock at start 1560
7 Carriage on Sales 1050
8 Insurance 180
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9 Land and Building 2500
10 Debtors and creditors 1040 4000
11 Furniture and Fittings 1500
12 Cash at Bank 1900
13 Cash in hand 1000
14 Bad debts 120
15 Depreciation 200
16 Transportation. 150
16910 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/=
Series No. 25

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:
116
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
vii. The excess of sales over cost of goods sold is called:

A. Net profit
B. Net loss
C. Gross profit
D. Gross loss
viii. A cheque which is denied payment by the bank is known as:
A. Dishonoured cheque
B. Bank cheque
C. Honoured cheque
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D. Uncredited cheque
ix. Proper document used when depositing money in the bank is known as:
A. Invoice
B. Pay-in-slip
C. Bank statement
D. Payment voucher
x. 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 x
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 A. Errors of omission
wrong class of account. B. Error of wrong posting
(ii) Occur where the correct accounts are used C. Errors of complete
but each items is shown on the wrong side reversal of entries
of account. D. Errors of original entry
(iii) Is where the transaction is completely E. Error of principle
omitted from the books F. Errors of commission
(iv) These errors occur where errors cancel G. Compensating errors.
each other. H. Wrong totaling
(v) Occur when the correct figure is entered in
the wrong person account.
Answers
Column A i ii iii iv v
Column B
SECTION B (40Marks)
3. Mention five key users of financial statement.
4. Explain the following terms:
i) Consolidated fund
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ii) Virament
iii) Three column cash book
iv) Suspense
v) Books of prime entry.
5. Explain five objectives of book keeping
6. 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)
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
16 November.
th
Sold to kakakuona ltd
10 pieces of jeans at TZS 5,000 each
50 pieces of woollen pullover @ TZS 1,500
Less 10% Trade discount
28th November. 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.
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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
10 January 2021 He paid ruled paper
th
TZS 400
15 January 2021 He paid postage
th
TZS 5000
20 January 2021 he paid travelling
th
TZS 2000
25th January 2021 He paid stamp TZS 600
28th January 2021 He paid Benidictor. TZS 8400
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
120
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
(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
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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 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
LIST A LIST B
i. All assets are recorded in the books of accounts at their A. Prudence concept
purchases price. B. Money measurement
ii. The concept state that a business firm will continue to carry concept
on its activities for unforeseeable future of time. C. Revenue concept
iii. The revenues and expenses must be compared to determine D. Business entity concept
the profit or loss made by the business E. Book-keeping concept
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iv. Only transactions which can be expressed in terms of money F. Going concern concept
are recorded in the books of account. G. Matching concept
v. The owners affairs and his or her business must be separated H. Historical cost concept
I. Dual aspect concept
J. Accounting concept
LIST A i ii Iii Iv v
LIST B

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 NAME OF ACCOUNT CLASSIFICATION
I Motor vehicle
Ii Plant
iii Commission received
Iv Cash account
V KB company ltd
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.
Transactions Account to debit Account to credit

i. Goods returned to supplier Supplier a/c Return outward a/c
ii. Received cash from Mlasi
iii. Goods returned from Kaiza
iv. Sold goods on credit to Ibra
v. Paid wages by cheque
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vi. Bought stationary by cash
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
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 300.00
6 Received cash from Makonta 120.00
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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
Series No. 27
125
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
(a) Returns inwards
(b) Closing stock
(c) Returns outwards
(d) Opening stock
126
(viii) 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
(ix) 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
(x) 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 List B
(i) The excess of current assets A. Current liabilities
over current liabilities B. Balance sheet
(ii) Statement which shows the C. Profit and loss account
financial position of the D. Capital employed
business in a particular period E. Net profit
(iii) The properties bought for the F. Capital
business uses and have long life G. Total assets
(iv) The amount of money or H. Long term liabilities
money’s worth invested in the I. Current assets
business for the purposes of J. Trial balance
making profit K. Working capital
(v) The form of capital which is L. Fixed assets
obtained by adding working M. Cash
capital to fixed assets N. Assets
Answers
List A (i) (ii) (iii) (iv) (v)
List B
SECTION B ( 40 MARKS)
3. Write short notes on the following terms
127
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)
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
9. The trial balance below belongs to Kamwezi traders of mbeya for the year ended 31st
December, 2013
128
DETAILS DR CR
Inventory 1st January,2013 9,500
Purchases and sales 11,500 28,500
Capital 44,800
Land and Building 19,000
Machinery 22,000
Carriage inwards 1,200
Carriage outwards 1,700
Returns 1,000 800
Motor vans 16,000
Debtors 9,000
17,000
Creditors
Rent and rates 1,500 3,500
Discounts 1,000
Insurance 1,000 10,000
Loan from CRDB
Drawings 2,200
Cash at bank 2,000
Cash in hand 3,000 104,600
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
Series No. 28
129
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
130
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 LIST B
i. A book of prime entry used to record 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 D. Sales journal
returns outward from goods bought on
credit
v. A book of account where the total E. Journal proper
131
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

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.
132
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 40000
2. Sold goods on credit to Shilla 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 50000
16. Sold goods on credit to Mkwizu 36000
17. Paid salaries 9600
18. Cash sale to date 6000
19. Paid adverting expenses 7000
133
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.
134
Series No. 29

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 C.
Assets – Capital = Liabilities D. Liabilities + Capital = Assets.
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
135
viii. 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
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 bookkeeping 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

136
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 LIABILITIES
i 157,000 86,500 ____________
ii ________________ 247,000 88,500
iii 273,000 ____________ 63,500
iv __________ 281,500 134,300
v 205,000 176,200 _____________
5. Describe five objectives of Book keeping

6. What are the reasons of goods return to supplier?
SECTION C: (45Marks)
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
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
April 15. Sold goods worth TZS 5,000 to Mwakalenge
137
April 22. Sold goods to Mikumi book store
200 advanced learner’s dictionaries at TZS 2,500 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
Stock (1stjan 2012) 37,900
Returns outward 3,100
Carriage inwards 500
Rent received 5,400
Rent received 5,400
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
Stock (31st December 2012) 30,300
138
Answers: Series No. 1
QN.01. 10 MARKS = 1 MARK@

D D C A B C A B B D
Qn. 02. 05 marks = 1 mark @

List A i ii iii iv v
List B B D F C 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
139
Qn. 05. 1 mark @ = 10 marks.
a) DR. BANK ACCOUNT CR. CASH ACCOUNT
b) DR. WAGES ACCOUNT CR. CASH ACCOUNT
c) DR. BANK ACCOUNT CR. NICKSON ACCOUNT
d) DR. PURCHASES ACCOUNT CR. CASH ACCOUNT
e) DR. MOTORVAN ACCOUNT CR. BANK ACCOUNT
QN. 06. 2 MARKS @ = 10 MARKS. For any good five points

i. Unpresented cheque
ii. Uncredited cheque
iii. Standing order
iv. Bank charges
v. Direct credits
vi. Ommissions
vii. Dividends
QN. 07. 15 MARKS = 0.5 each tick. Including heading and sides.
DR. THREE COLUMN CASH BOOK CR.
DAT DETAILS DIS CASH BANK DA DAETAI DISC. CASH BANK
E C. TE LS REC
ALL
1/02 Balance b/d 11,000 38,500 7/02 H .Bahati 300 11,700
3/02 P.Gaga 500 15,000 10/0 Cash “c” 15,000

2
10/02 Bank “c” 15,000 20/0 Wages 31,500
2
17/02 Sima 400 15,600 22/0 T .Gulam 1000 19,000
2
25/02 B.Bahati 300 11,700 28/0 A .Somji 700 27,300
2
28/02 Balance c/d 29,200 28/0 Balance 26,000

2 c/d
1200 26,000 104,500 2000 26,000 104,500
01/03 Balance b/d 26,000 01/0 Balance 29,200

3 b/d
QN. 08. 0.79 @tick = 15 marks, including heading
140
Nyakibinda’ s region
Income statement for the year ended 31st December, 1987
sales 130,000
Less: sales returns 10,000 120,000
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 (75,000)
Gross profit 45,000
Add: other incomes: interest received 260
Total income 45,260
Less: operating expenses
Rent and rates 4,960
Salaries 15,600 (24,360)
Net profit 20,900
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
Office equipment 31,100
319,100 319,100
141
SECTION A 15 MARKS
QUESTION ONE (10 MARKS)
I II III IV V VI VII VIII IX X
D C B A C A D B D A
.
QUESTION TWO (5MARKS)
I II III IV V
C E H G A
SECTION B 50 MARKS
QUESTION THREE ( 10 MARKS)
ACCOUNT TO BE DEBITED ACCOUNT TO BE CREDITED
I Cash account Capital account
II L.Lihimba Account Bank Account
III Purchases Account M. Wamiliki Account
IV Cash Account Chihamoto Account
V Cash Account Rent Account
VI Drawing Account Cash Account
VII Commission Account Bank Account
VII Furniture Account Ntile Account
I
QUESTION FOUR
i. Error of omission
 Results when transaction is complete removed from books of account
ii. Original entry error
 Occurred when the original figure is incorrect, yet double entry is still using the
incorrect figure
iii. Error of commission
 Occurred when correct amount is entered but in wrong person account
iv. Error of principle
 Occurred when item with correct amount recorded in wrong class of account
v. Under casting error
 Occurred when the amount is underlined and is recorded in one book
142
QUESTION FIVE (10 MARKS)
PURCHASES JOURNAL
DATE DETAILS INVOICE TOTAL
DATAILS
BAGAMOYO TRADER
5/01/2016 80 bags of salt @ 5,000 80 × 5,000 =
40 bags of sugar @ 600 400,000 640,000
40 × 6,000 =
240,000
MASAMA WHOLESALER
10/01/2016 20 boxes of books @ 4,000 20 × 4,000 = 80,000
10 pairs of shoes @ 3,000 10 × 3,000 = 30,000 110,000
KOKOTO LTD
15/01/2016 30 bags of sand @ 5,500 30 × 5,500 = 165,000
165,000
31/01/2016 Transfer to purchases Account 9,150,000
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)
SALVATORY ENTERPRISES
143
DATE DETAI DISC CASH BANK DATE DETAIL DISC CASH BANK
LS OUNT OUNT
ALLO RECE
WED IV
01/6/2021 Balance - 2900 65400 8/6/2021 Morrison 500 - 9500
02/6/2021 Samatta 300 - 2700 11/6/2021 Cash - - 10000
11/6/2021 Bank - 10000 - 25/6/2021 Insurance - 9200 -
16/6/2021 Alikiba 700 - 27300 29/6/2021 Bocco 1100 - 42900
28/6/2021 Chama 200 3800 - 30/6/2021 Balance - 33600 3300
1200 42800 95400 1600 42800 95400

01/7/2021 Balance - 33600 3300
DR CASH BOOK CR
QUESTION EIGHT (15 MARKS)

JOHN’S
INCOME STATEMENT FOR THE YEAR ENDEDED 31 DECEMBER 2019
SHS SHS SHS
Sales 225,000
Less Return Inward ( 15,000)
Net sales 210,000
Less: cost of Goods sold
Add Net purchases:
Purchases 85,000
90,000
Less: Return outwards (25,000) 65,200
Cost of goods available for sales 80,200
(32,000) 58,200
Less: Closing stock
151,800
Gross profit
Less: Total expenses
Carriage outward 2,000
Stationary 7,000
Insurance 3,500
Electricity 2,500
Rent 4,000
Fumigation 3,500 (2,500)
Water bill 2,500 126,800
Net profit
QUESTION NINE
ABC TRADERS
144
TRIAL BALANCE AS AT 30 JUNE 2018
S/N NAMES OF ACCOUNT DR CR
1. Stocks at January 2018 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 1,500
10. Motor vehicles 1,200
11. Debtors 1,950 1,538
12. Creditors
13. Cash at bank 1,654
14. Cash in hand 2,040
15. Drawings 895 5,424
16. Capital 25,424
25,424

SECTIONA (20 Marks)
1.
145
NO. i ii iii iv v vi vii viii iv v
ANS B B A D A D B C A B
W
@1 Mark = 10
2.
GROUP A i ii iii iv v
GROUP B E F C B D
@1 Mark = 05
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 ACCOUNT TO BE DEBITED ACCOUNT TO BE CREDITED
I Cash a/c Bank a/c
Ii Rent a/c Bank a/c
Iii KC COY a/c Sales a/c
Iv Cash a/c DUBAI COY a/c
V Insurance a/c Cash a/c
@1 Mark=10
6.
146
S/N ASSETS CAPITAL LIABILITIES
(vii). Increase of assets for cash Increase of
capital
(viii). Decrease of assets for Bank Decrease of liabilities for
creditor
(ix). Increase of assets for stock Increase of liabilities for
creditors
(x).  Increase of asset for
Bank
 Decrease of asset for
Debtors
(xi).  Increase of asset for cash
stock
(xii).  Increase of asset for
stock
cash
@ 1 Mark=10
7.
(i) PURCHASES DAY BOOK
DATE DETAILS F INVOICE INVOICE

DETAILS TOTAL
1/8/2020 MWAGOMBO
100 bags of Rice @ 550 100 × 550 = 55,000
50 bags of sugar @ 750 50 × 750 = 37,500 92,500
5/8/2020 DONS AND SONS LTD
10 boxes of cooking fat @ 10 × 320 = 3,200
320 12 × 150 = 1,800 5,000
10/8/2020 12 pairs of sandals @ 150
SHILABELA TRADERS 20 × 170 = 3,400
50 × 350 = 17,500 20,900
15/8/2020
50 shirts @ 350 1000
DONS AND SONS LTD G 2 × 500 = 1000
119,400
2 cartons malaika soap@ 500 L
To purchases account DR
(ii) Supplies’ personal account

DR MWAGOMBO ACCOUNT CR
Purchases 92,500
DR DONS AND SONS LTD ACCOUNT CR

Purchases 6,000
147
DR SHILABELA TRADERS ACCOUNT CR
Purchases 20,900
(iii)
DR PURCHASES ACCOUNT CR
Sundry creditors 119,400
20 Ticks @ 0.75 Mark = 15
8.
THREE COLUMN CASH BOOK
DATE PARTICULARS F DISC CASH BANK DATE PARTICULARS F DISC CASH BANK
1/1/2019 Balance b/d 4000 1/1/2019 Cash C 500
1/1/2019 Bank C 500 2/1/2019 Rent 2400
4/1/2013 Pande 200 800 6/1/2019 Peter 20 980
8/1/2019 Banda 100 1900 15/1/2019 Purchases 19000
31/1/2019 Sales 14000 20/1/2019 General exp 100
31/1/2019 Balance c/d 3480 24/1/2019 Drawings 500
31/1/2019 Balance c/d 1200
300 1300 23380 20 1300 23380
1/2/2013 Balance b/d 1200 1/2/2019 Balance b/d 3480
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
148
20 Ticks @ 0.75 Mark = 15

1. 1 Mark @ = 10 Marks.

B C A A C C B D C B
2. 1 Mark @ = 5 Marks.
COLUMN A i ii iii iv v
COLUMN B C F E A 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 Account to be credited.

Bank Account Kamara Account
Purchases Account Cash Account
Bank Account Cash Account
Cash Account Bank Account
Makame Account Return outward Account
149
5. 1 Mark @ = 10 Marks.
SALES DAY BOOK

DATE DETAILS
May-01 HIZZAH
6. 0.5 Mark @ = 10 Marks.
PETTY CASH BOOK

V TOTAL
REC FOL DATE DETAILS
NO PAY
Jan
150
7. 0.75 Mark @ = 15 Marks.
STATEMENT OF FINANCIAL POSISTION AS AT 31/12/2019

DESCRIPTIONS TZS
FIXED ASSETS
Machinery
151
8. 1 Mark @ = 15 Marks
CASH ACCOUNT
DAT DETAILS FOL AMOUNT DAT
Balance 25,370
Dividend 850
BANK RECONCILIATION STATEMENT AS AT 31/12/2019

DESCRIPTION
Balance as per adjusted cash book
Add: Unpresented cheque
9. 0.625 Mark @ = 5 Marks.
CASH ACCOUNT
DAT DETAILS FOL AMOUNT DAT
Return outward 122,040
Debtor 300,000
0.5 Marks @ = 10 Marks.
152
GENERAL JOURNAL
DESCRIPTION DEBIT DEBIT
Sales Account 30,000
Suspense Account 30,000
Section a (15 Marks)
Qn1
B A D A B A D B B A
Each 1 mark total 10 marks
QN 2.
List B D G E H F
Each 1 mark total 05 marks
Qn 3.
a
DEBITED CREDITED
i Cash withdraw from bank for business use CASH A/C BANK A/C
ii Payment of rent by cheque RENT A/C BANK A/C
iii Sales of goods to KAMBONA KAMBONA A/C SALES A/C
iv Cash received from SECHAMBO CASH A/C SECHAMBO A/C
v Payment of insurance in cash INSUARANCE A/C CASH A/C
Each tick 0.5 mark total 05 marks
b.
s/n Name of acconts Classification
i Building Real a/c
ii Advertising Nominal a/c
iii Paschal Personal a/c
153
iv Furniture Real a/c
v 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
by the principle, 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. COMPENSATING ERRORS
These are errors which cancel each other one credit side and another debit side over-
casted or under-cast by the same amount.
ii. 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
iii. ERRORS OF COMMISSION
These are errors that occur when a transaction is posted to the wrong personal account of
the same class.
iv. ERRORS OF OMISSION
These are errors that occur when transactions are completely omitted from the book of
accounts.
v. ERROR OF ORIGINAL ENTRY
These are errors that occur when double entry enter in correct account but incorrect
figure.
vi. ERROR OF PRINCIPLE
154
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.
vii. 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
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
Section C (45 MARKS)

7. PURSHASES JOURNAL
DATE DETAILS F INVOICE INVOICE
DETAILS TOTAL
1/8/2020 RTC LIWALE Pl
100 bags of rice @ 550 100 x 550 =
50 bags of sugar @ 750 55,000√ 92,500√
5/8/2020 WAMO STORES PL 50 x 750 =
10 boxes of cooking fat@ 320 37,500√
12 pairs of sandals @ 150 5,000√
10/8/2020 NALULEO TRADERS PL 10 x 320 =
20 pairs of bedsheets @ 170 3,200√
50 shirts @ 350 12 x 150 = 20,900√
15/8/2020 WAMO STORES PL 1,800√
2 cartoon Malaika soap @ 1,000√
500 GL 20 x 170 = 119,400
Transfer to purchases a/c (dr) 3,400√
155
50 x 350 =
17,500√
2 x 500 = 1,000
PURCHASES LEDGER
RTC LIWALE ACCOUNT
DETAILS TZS DETAILS TZS
1 Aug Purchases 92,500 √
WAMO STORES ACCOUNT

NALULEO TRADES ACCOUNT

5 Jan Purchases 20,900 √
GENERAL LEDGER
PURCHASES ACCOUNT
Purchases journal 119,400 √
15 ticks (√) Each tick (√) 1 mark total 15 marks
8. THREE COLUMN CASH BOOK

Dat Details F Disc Cash Bank Dat Details F Disc Cas Ban
e Allow e Rec h k
. .
1/1 Balance b/d 4000√ 1/1 Cash c 500√
1/1 Bank c 500√ 6/1 Mayele 20√ 980√
4/1 Kisinda 200√ 800√ 20/1 General 100√
Expenses
8/1 Feisal 100√ 1900√ 24/1 Drawing 500√
Salum
31/1 Balance c/d 1200 3920
300√ 1300 5900 20 √ 1300 5900
1/2 Balance b/d 1200√ 3920√

9.
156
INCOME STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2018.
Sales…………………………………………………………………………………………
620,000√
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√
Salaries and wages……………………………11,000√
Electricity…………………………………………7,000√
Discount allowed………………………………...4,000√
General expenses……………………………….6,000√ 36,000
NET PROFIT 202,000√
157

1. MULTIPLE CHOICES
QNN I II III IV V VI VII VIII IX X
ANS C D D A B B A D C B
W
2. MATCHING ITEMS
QNS I II III IV V
ANSW C 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
158
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
ii. Personal account
iii. Nominal account
iv. Real account
v. Real account
vi. Nominal account
vii. Nominal account
viii. Real account
ix. Nominal account
x. Personal account
159
SECTION C (45MARKS)
7.
BABAYOYO, PETTY CASH BOOK
Receipts F Date Details Total Stationar Postage Sundry
TZS TZS y TZS exp TZS
TZS
40,000 1/12 Cash
2/12 Sweeping charges 5000 5000
4/12 Coffee and sugar 6200 6200
7/12 Envelopes 11200 11200
10/12 Carriage 7500 7500
18/12 Postage stamp 2500 2500
25/12 Stationary 4300 4300
27/12 Stamp duty 700 700
28/12 Telegram 1700 1700
39,100 4300 16100 18700
39100 29/12 Cash
c/d 31/12 Balance 40,000
79100 79100
40,000 B/ 1/1 Balance
d
8. KWAVAVA
TWO COLUMN CASH BOOK
DATE DETAILS F CASH BANK DATE DETAILS F CASH BANK
TZS TZS TZS TZS
1/1/17 Capital 300000 150000 2/2/17 Purchases 23000
9/2/17 Vivian 14000 3/2/17 Rent 10000
12/2/1 Sales 105000 19/2/17 Rates 2000
7
26/2/1 Sales 50000 22/2/17 Furniture 55500
7
27/2/1 Cash 30000 27/2/17 Bank 30000
7
28/2/1 Bank 45000 28/2/17 Mavere 75000
7
28/2/17 Cash 45000
28/2/17 Balance c/ 270500 183,000
d
464000 230,000 464000 230,000
160
1/3/17 Balance b/d 270500 183000
9. LILIAN MOORE
INCOME STATEMENT AS AT 31ST DECEMBER 2014
TZS TZS
Sales 620,000
Less, return on sales 12,000 608,000
Less, cost of sales
Opening inventory 700,00
Add, purchases 350,000
Add carriage inward 3500
346500
Add, wages 8,000 354500
424500
Gross profit 225500
Add, other income:
Commission received 10000
Discount received 8500 18500
Total income 244000
Salaries 11000
Electricity 7000
Discount received 4000
General expenses 6000 28,000
Net income (profit) 216,000
161
1. (1 mark each item toal 10 marks)
I ii iii iv v vi vii viii ix x
B A D A D B B B C C
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
162
(iv) Employees
(v) Auditors i.e internal and external
(vi) Suppliers
(vii) Prospective Customers
(viii) Owners
(ix) Prospective investors
(Any five points @2marks total 10 Marks)
7. MZAMZA’S SHOPPING CENTRE
DR CASH ACC OUNT CR

DATE DETAILS F AMOUNT DATE DETAILS F AMOUNT
1.4.2018 Capital’ 200,000√ 2.4.2018 Rent 46,000√
5.4.2018 Sales 38,000√ 9.4.2018 Kitambi 184,000√
7.4.2018 Pendo 68,000√ 16.4.2018 Bank ’C 20,000√
15.4.2018 P.Mkota 192,000√ 30.4.2018 Wages ’ 64,000√
30.4.2018 Bank ‘C’ 40,000√ 30.4.2018 Balance 224,000√
c/d
538,000√ 538,000√
1.5.2018 Balance b/d 224,000√
DR BANK ACC0UNT CR
DATE
DETAILS F AMOUNT DATE DETAILS F AMOUNT
3.4.2018
11.4.201 Adolf 400,000√ 4.4.2018 Nyanza 172,000√
8 Sales 302,000√ 19.4.201 Kapiga 100,000√
16.4.201 Cash ‘C’ 20,000√ 8 Motor expenses 15,000√
8 Sales 24,400√ 26.4.201 Cash ‘C’ 40,000√
22.4.201 8 Balance b/d 419.400√
8 30.4.201
8
30.4.201
8
1.5.2018 746,400√ 746,400√

Balance b/d
419,400√
(0.6 Marks @ 25 Total 15 Marks)
163
DAT DEDTAIL F DISC CASH BANK DA DETAIL F DIS CASH BANK
E S TE
2017
1.5. Balance 29,000 654,000 3.5. Makori I. 5000 95,000
2.5. K. Ochola b/d 3000 117,000
8.5. Bank C 100000 8.5 Cash C 100000
11.5 S.Ayako 7000 273,000 15/5 Wages 90000
20.5 J. Mango 1000 39,000 25/ Fur & Fit 250000
28.5 Sales 250000 29 Bank C 250000
Cash C 250,000 T.Oloo 3000 57,000

29.5
30. Kairo Di 22000 418000
30 Balance c/d 21,000 431000
11000 418000 1294000 30000 418000 1294000
1.6 Balance b/d

21000 431,000
8. LUANDA PROVISION STORE

DR THREE COLUMN CASH BOOK CR
164
( 0.6 @ Tick x25= 15 Marks)
9. WORKING
DR UNADJUSTED CASH BOOK CR
DATE DETAIL F AMOUNT DATE DETAIL F AMOUNT
10.12.201 Cheque 2,200 1.12.2012 Balance b/d 4,000

2
Cheque 600 5.12,2012 Kulwa &Dotto 1,000
31.12.201
2 Mathias 1,200 15.12.201 Morrison 2,500
2
31.12.201 Balance c/d 7,000 Marwa 3,500
2 31.12.201
2
31.12.201
2
11,000 11,000
Balance b/d 7,000
(3 Marks)
DR ADJUSTED CASH BOOK CR
Dividend 1,500√ Balance b/d 7,000√
Credit Transfer 3,000√ Bank charges 1300√
Balance c/d 4300√ Standing order 500√
8,800 8,800
Balance b/d 4,300√
165
BANK RECONCILIATION STATEMENT AS AT 31.12.2012
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
166
1. 1 @ = 10 Marks
i ii Iii iv v vi vii viii ix x xi xii xiii xiv xv
A C E A C B B C B E D E E C A
2. 1 @ = 5 Marks.
i Ii iii iv v
D F B C E
1MARK @1=5
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
167
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
(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. Purchases invoice
II. Credit note
III. Debit note
IV. receipts
1MARK@1=4
SECTION C
7. BANK RECONCILATION STATEMENT AS AT 31 MARCH 1998
Balance as per cash book 52,800
Add uncredited cheque hamis 1600
Standing order 490
168
Bank charges 280 2,370
55,170
Less unpresented cheque 4900
Traders credit 570 5470
Balance as per bank statement 49,700
1MARK@0.7=15
8.
PRINCE WHOLESALER SALES DAY BOOK

DATE PARTICULAR FOLIO INVOICE INVOICE
DETAIL TOTA
APR 1 JUNIOR
10 dozen of vitenge@8000 SL1 80,000
25 dozen ofkhanga@10,000 SL2 250,000 330,000
APR 5 MERCY
100 pairs of shoes@ 2000 SL3 200,000
200 pars boots@ 3000 SL4 500,000 700,000
AP12 BARAKA
100 dozens of books@3000 SL5 300,000
200 reams paper @1500 SL6 300,000 600,000
AP 15 NEEMA
Sold goods worth shs 5,000 SL7 5,000 5,000
AP22 STAR BOOK
200 dictionaries@2500 SL8 500,000
800 fictions book@500 SL9 400,000 900,000
AP 30 Transfer to the GL 2,535,000
b) SALES LEDGER AND GENERAL LEDGER
169
DR MONICA’S TWO COLUMN CASH BOOK CR
date particular foli Cah Bank date Particular folio Cash Bank
o 000 000 000 000
2021 2021
¼ Capital 200 150 3/4 Purchases 100 90
5/4 Sales 300 200 10/4 Bank 250
10/4 Cash C 250 20/4 Wages 50
14/4 Ipyana 50 40 22/4 Purchases 150 100
25/4 Sales 450 26/4 Insurance 25
27/4 Bank C 100 27/4 Cash 100
150 100 c/d 700 425
28/4 sales 30/4 balance
1,250 740 1,250 740
balance b/d 700 425
1/5
170
I II III IV V VI VII VIII IX X
A D C D B B B B C C

1. 1 Mark @ = 10 Marks.
LIST A I II III IV V
LIST B A B D G F
2. 1 Marks @ = 5 Marks.
SECTION B(40 MARKS)
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)
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
171
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.
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. CASHBOOK. CR
DATE DETAIL F CASH BANK DATE DETAI F CASH BANK
L
1/1/2000 Balance b/d 100,000 50,000
2/1/2000 Sales 10,000 2/1/2000 Wages 10,000
3/1/2000 Rent 10,000
4/1/2000 Sales 75,000 4/1/2000 Jayden 15,000
5/1/2000 Shalom 30,000
6/1/2000 Drawings 10,000
7/1/2000 Capital 50,000
31/1/2000 Balance c/d 240,000 30,000
265,000 50,000 265,000 50,000
1/2/2000 Balance b/d 240,000 30,000.
7. Omega ltd’s
Sales journal For the month ending 31st December SJ01.
Date Particulars Folio Invoice Invoice detail Total.

no.
Dec Pearl L1 -
1st -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
Dec 4th Shalom L2 -
-10 steel rods 10 x 10,000 =100000
-15 paint brushes 15 x 5,000 = 75,000
-4 rollers = 10,000 185,000
Dec 7th Britney L3 -
-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
Dec 31st transfer to the sales account GL1 - 815 000
172
Individual debtors’ accounts
Dr. Pearl account L1 cr.
Dec1 sales SJ01 205,000
Dr. Shalom account. L2 Cr.
dec 4 sales SJ01 185,000

Dr. Britney account L3 cr
dec 7 sales SJ01 425,000

General ledger
Dr. sales account. GL1 Cr.
Dec 31 sundry debtors SJ01 815,000
8. Victoria limited’s
Income statement for the period ending 31/12/2021.
Sales 400,000
Less sales returns 17,000
Net sales 383,000
Less cost of sales
Purchases 150,000
Carriage in wards 7000
157,000
Purchases returns 20,000 137,000
cost of goods available for sale 177,000
less closing stock 50,000 127,000
Gross profit 256,000
Add other incomes
Discount 15,000
Gross income. 271,000
Less expenses.
173
Discounts 5,000
Carriage out wards 9,000
Salaries 100,000
Rent 80,000
Advertising 2,000
Travelling expenses 15,000 211,000
Net profit 60,000
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
148,000 148,000
Balance b/d 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 45,000
174
Balance as per adjusted cashbook. 111,000
MARKING SCHEME
1.
ITEMS i ii iii iv v vi Vii viii ix x
ANSWER C B A B C A D A D A
1√ @ item = 10 marks
2.
ITEMS I ii iii iv V
ANSWER B D G A F
1√ @item = 05 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.√
175
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.√
10√ @ √ 1 mark = 10 marks.

7. SAVUTU GENERAL SUPPLIES
Receipt Folio Date Details V.N Total Analysis Columns
o payamen
t
2020 Accom Meal Telep Trans Stat
150,000√ C.B√ ½ Cash
½ Transport 1 18,000√ 18,000√
½ Meals 2 7,500√ 7,500√
½ Stationery 3 1,000√ 1,000
√
2/2 Accom 4 24,000√ 24,000
√
2/2 Meals 5 5,000√ 5,000√
2/2 Telephone 6 3,000√ 3,000√
2/2 Transport 7 2,000√ 2,000√
3/2 Meals 8 7,500√ 7,500√
3/2 Accom 9 24,000√ 24,000
√
3/2 Stationery 10 1,500√ 1,500
√
3/2 Telephone 11 4,200√ 4,200√
4/2 Stationery 12 2,000√ 2,000
√
4/2 Transport 13 2,500√ 2,500√
4/2 Meals 14 5,000√ 5,000√
4/2 Accom 15 13,000√ 13,000
√
5/2 Meals 16 2,500√ 2,500√
5/2 Transport 17 20,000√ 20,000√
5/2 Telephone 18 1,000√ 1,000√
Cash spent 143,700√ 61,000 27,500 8,200√ 42,500√ 4,500
√ √ √
c/d 5/2 Balance 6,300√
176
150,000√ 150,000√
6,00√ b/d 6/2 Balance
143,700√ 7/2 Cash
PETTY CASH BOOK√
50√ @√ 0.3 mark = 15 marks
8. LEWIS STATIONERY
ADJUSTED CASH BOOK√
DR CR
Date Details Folio Amount Date Details Folio Amount
2019 2019
31/12 Balance b/d 183,000√ 31/12 Bank charges 2,200√
31/12 Credit transfer 5,400√ 31/12 Balance c/d 186,300√
188,500√ 188,500√
1/1/20 Balance b/d 186,300√
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√
177
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

QN1.
i. ii. iii. iv. v. vi. vii. viii. ix. x.
D D A A A C A B B B
QN2.
i. ii. iii. iv. v.
F A B C 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.
178
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.
i) Customers
ii) Suppliers
iii) Government agency
iv) Financial institutions
v) Employees
i) Unpresented cheques
ii) Uncredited cheque
iii) Credit transfer
iv) Standing order
v) Dishonoured cheque
QN5.
S/N Account to be debited Account to be credited
B Purchases account Cash account
C Transport charges account Cash account
D Amina account Sales account
E Wages account Bank account
F Furniture account Kidawa account
Qn 6.
i) 7,500
ii) 32,850
iii) 20,800
iv) 41,800
v) 3,200
vi) 40,000
vii) 44,000
viii) 15,000
ix) 180,000
x) 50,000
QN7.
DR THREE COLUMN CASH BOOK CR
Date Details F Discoun Cash Bank Date Details F Discount Cash Bank
t received
allowed
2020 2020
01.01 Balance 1,000 3,000 02.01 Bank 1,500
179
02.01 Sales 2,000 03.01 Purchases 500
02.01 Cash 1,500 04.01 Cash 1,000
04.01 Bank 1,000 06.01 Rent 100
10.01 Khalid 30 270 07.01 Wages 200
10.01 Othma 20 180 12.01 Nadia 8 192
21.01 n 1,200 12.01 Juma 10 240
31.01 Sales 1,000 17.01 Stationery 400
Cash 20.01 Taxes 800
1,000
31.01 Bank c/d 2,400 2,818
50 31.01 Balance 18
5,200 5,950 5,200 5,950
b/d 2,400 2,818
01.02
Balance
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 DISCOUNT ALLOWED ACCOUNT CR
Date Details F Amount Date Details F Amount
31.01.202 Sundry 50 31.01.202 Balance c/ 50
0 debtors b/ 50 0 d
01.02.202 Balance d
0
DR DISCOUNT RECEIVED ACCOUNT CR

Date Details F Amount Date Details F Amount
31.01.202 Balance c/ 18 31.01.202 Sundry 18
0 d 0 creditors b/ 18
01.02.202 Balance d
0
Qn 8.
180
KASANURA’S
INCOME STATEMENT FOR THE YEAR ENDED 31ST MAY, 2021
Sales 80,000
Less: Cost of goods sold:
Add: Purchases 55,000
Less: Returns outwards 4,500 50,500

Less: Closing stock 20,000
55,500
Gross profit
24,500
Less: Insurance 2,500
Rent 12,000
43,000
Net loss 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:
Capital 70,000
Less: Net loss
18,500
51,500
181
QN9.
JOURNAL ENTRIES
S/N DETAILS DEBIT CREDIT
Purchases account 2,000
To Sharifa account 2,000
Being error of complete omission now is
corrected 5,000
Ray Account 5,000
To Lay Account
Being error of commission now is corrected 1,000
Office equipment Account 1,000
To Office expenses Account
9,000
Being error of principle now is corrected 9,000
Purchases Account
To Eva Account 5,000
Being error of original entry now is 5,000
corrected
Wages Account
To Sales Account
Being error of compensating now is
corrected
1. (10 marks, 1@)

C D B D C A D D A D
2. (5 marks, 1 @)
LIST A i. ii. iii. iv. v.
LIST B E C A B D
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
182
 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. Sales Nominal account

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
 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
183
(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)
PETTY CASH BOOK
Recei F Date Details Vou Total Analysis colums Ledge
pt cher r
no. accou
nt
Posta Stationa Travelling
ge ry expenses
184
2018
1,130 b/d 01.04 Balance
23,870 cb1 02.04 Cash
04.04 Stamps 01 8,500 8,500
09.04 Samwel 02 2,350
11.04 Bus fares 03 1,720 1,720
Envelops 04 700 2,350
17.04
680 23.04 Telephon 05
26.04 Petrol 06 10,000
700 10,000
b/d
CB 23270 8,500 700 11,720 2,350

30.04 Balance 2,410
25,680 1
Cash GL2 GL3 GL4
25,680
2,410 01.05 Balance

22,590 01.05 Cash
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
Opening stock, 6290
Add; purchases 44,280
185
Add; carriage inward 1,920
Less: return outward 980
Net purchases 45,220
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 Cr
2015
01.01 Cash in hand CB1 200,000
Cash at bank CB2 800,000
Furniture GL1 500,000
186
Premises CL1 200,000
Debtors Mwaisa SL1 50,000
- Mtumbadi SL1 20,000
Creditors - Mnyabi PL1 30,000
Madenge PL2 10,000
Capital GL1 1,730,000
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: unpresented cheque 7,500
13,500
Less; uncredited cheque 9,000
Bank charges 30 (9,030)
Overdraft as per cash book 4,470
MARKING GUIDE SERIES NO 28/50

1. I II III IV V VI VII VIII IX X
2. C B C D B C B D D D
I II III IV V
C E H G A
187
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.
SECTION C
188
A STUDENT SHOULD ANSWER ALL QUESTIONS.
7. (A) DR THREE COLUMN CASH BOOK CR
DATE DETAILS F DIS.ALL CASH BANK DATE DETAILS F DIS.REC CASH BANK
2019 2019
OTC 1 Balance b/d 2,200 62,700 OTC 4 HAPPY 400 7,100
6 Adam 4,200 16 Bank
300 C 4,800
11 Kamau 23 Dorice
500 5,100 700 6,300
16 Cash 25 Cash
C 4,800 C 3,000
25 BANK 30 Wages
C 3000 31 2,700
Balance
c/d 2,800 55,300
800 10,300 71,700 1100 10,300 71,700
NOV1 Balance
b/d 2,800 55,300
(B) GENERAL LEDGES

DR DISCOUNT RECEIVED ACCOUNT CR
DATE DETAIL F AMOUNT DATE DETAILS F AMOUNT
S
2019, 2019
OCT 31 Balance c/d 1100 OCT 31 Cash book 1100
1100 1100
DR DISCOUNT ALLOWED ACCOUNT CR

2019, 2019 c
OCT 31 Cash book 800 OCT 31 Balance / 800
800 d 800
(30 ticks @ 0.5 = 15 marks)
8. (i) KUFAKUNOGA SHOP

Balance b/d 9,510 Bank charges 1,000
Credit transfer 4,340 Standing order 3,000
Balance c/d 9,850
13,850 13,850
189
Balance c/d 9,850
(ii) 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
LESS; COST OF SALES
190
ADD; Purchases 1,656,000
1,820,800
Less; Purchases return 4,000
COST OF GOODS AVAILABLE 1,816,800
Less; Closing Stock 201,600 (1,615,200)
GROSS PROFIT 585,600
ADD; Discount received 47200
632,800
Less; EXPENSES
Insurance 20400
Electricity bills 30,000
Bad debts 19,200
Rent and rates 9,600 (490,800)
NET PROFIT 142,000
(23 Ticks @ 0.65217 = 15 marks)

1.
B D D D D C D C D B
2.
191
i ii iii iv v
E D A G C
3.
SOURCE DOCUMENT USES
i Receipts/cheque Record cash transactions
ii Invoice To record goods sold on credit/ credit sales
iii Debit note To record goods returned back to supplier
iv Credit note To record goods returned in business by customers
v Invoice 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.
Account to debit Account to credit
ii Purchases account Cash account
iii Cash account Commission received account
iv Hassan account Sales account
v Computer account Bank account
vi Chudo 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
iii. It also reduces the probability of errors during book keeping as the head cashier
periodically reviews it.
iv. It is simple to maintain since do not need much knowledge to record and saves time.
192
v. It shows clear picture the amount spent during a period and the balance at the end of
each period.
Section c
7. 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
427,150
Less: return outwards
5,000
Cost of goods available for sale (COGAS) 480,750
Less: closing stock 62,000 418,750
Add: commission received 3,200
Total income 566,450
LESS: EXPENSES
Insurance 6,000
Fuel and power expenses 47,300
General expenses 30,000 370,100
Net profit 196,350
8. DR TWO COLUMN CASH BOOK FOR MAY 2014 CR

DATE DETAILS F M- DATE DETAILS F CASH M-
CASH PESA PESA
May Capial 120,00 250,000 May purchases 50,000
01 0 02
May sales 45,000 May Cash C 16,000
04 07
May M-pesa C 16,000 May Drawings 5,000
07 13
193
May Sales 32,000 May Rent 5,200
17 24
May commission 8,000 May Water bills 2,000
23 28
May balance c/d 173,80 219.000
31 0
181,00 290,000 181,00 290,000
0 0
9. CHIMWAGA’S JOURNAL PROPER FOR JULY 2021

DEBIT CREDIT
Business buildings 350,000
Furniture 100,000
Motorcycle 150,000
Computer 180,000
Van 400,000
Debtors 30,000
Bank balance 90,000
Cash balance 20,000
Loan from finca 220,000
Account payable 84,000
capital 1,016,000
1,320,000 1,320,000

1.
C B C A A A A B B D
2.
GROUP A (i) (ii) (iii) (iv) (v)
194
GROUP B B D E A 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 Document Book of Ledger Name o of the

issued original entry accounts involved
Sold goods on credit
i to Latifa Sales invoice Sales day book Sales Debtor account
ledger Sales account
195
Goods returned by
ii us to supplier. Debit note Purchases General Creditor account
return journal ledger 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
Capital account Cash account

(i) Owner put cash into business.
Cash account Purchases account
(ii) Bought goods for cash.
Sales account Cash account
(iii) Sold goods for cash.
Rent account Cash account
(iv) Received cash for rent.
Cash account Drawings account
(v) Owner withdraws cash from
business for personal use.
7. Dr Adjusted cash book Cr

Details Amount Details Amount
196
Balance b/d 22500 Bank charge 780
interest received 650 Standing order 800
Direct deposits 900 Balance c/d 22470
24050 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
T. Thomas’s petty cash book

receipt fol Date details Pv total Analytical columns
io wages stationer postage ledger
y
4,670 b/d 1/2 Balance
45,330 1/2 cash restored
3/2 wages 8,760 8,760
7/2 Postage stamps 2,940 2,940
10/2 wages 9,110 9,110
14/2 envelops 2,280 2,280
17/2 wages 8,840 8,840
20/2 J. Mureithi 4,160 4,160
21/2 stationery 2,750 2,750
24/2 wages 8,480 8,480
47,320 35,190 5,030 2,940 4,160
28/2 balance c/d 2,680
50,000 50,000
2,680 b/d balance
47,320 reimbursement
50,000 Cash float
9.
General Journal
197
details debit credit
1. Equipment account 55
Sales account 55
2. Suspense account 60
Purchases account 60
3. Drawing account 115

Purchases account 115
4. Bank charges account 38

Suspense account 38
5. Suspense account 270

Debtor (B.cross) account 270
Dr Suspense account Cr
details Amount details Amount
Purchases 60 Difference from the t.b 292
Debtor (B.cross) 270 Bank charges 38
330 330
198
1. 10 MARKS
QTS i Ii iii Iv v vi vii Viii ix X x xii Xii xiv xv
i i
ANS B C B A A C B A B D D C A B C
@ items =01 Mark x 10 =10Marks
2. 05 MARKS
QTS I ii iii iv V
ANS F B D C A
@ items =01 Mark x 05 =05Marks
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√
199
(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√
@ 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 F Invoice details Invoice total
2019 RTC Kilimanjaro
JAN 1 100 bags of Rice@5,000 500,000√
50 bags of Sugar@7,000 350,000√ 850,000√
JAN 5 Mangi Ltd
10 boxes of cooking oil fat @3,000 30,000√
12 pairs of Sandal @ 2,000 24,000√ 54,000√
JAN 10 Moshi Traders
20 pairs of bed sheet @7,000 140,000√
50 shirts @3,000 150,000√ 290,000√
JAN 31 Purchases account 1,194,000√
@ tick =01 Mark x 10 =10Marks
200
7. (i) DEBIT ADJUSTED CASH BOOK CREDIT
DETAILS DETAILS
Balance b/d 15,000√ Bank charges 300√
Dividend 2,400√ Charity subscription 700√
Credit transfer 2,600√ Standing order 2,000√
Cash deposit 14,000√ Balance c/d 31,000√
34,000√ 34,000√
Balance b/d 31,000√
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
201
9. (a) A. Naweza and Sons Ltd Trial balance as at 31 December, 2019
S/NO NAME OF ACCOUNT DEBIT CREDIT
1. Cash 15,300√
2. Sales 48,000√
3. Van 75,000√
4. Capital 250,000√
5. Purchases 62,000√
6. H. James – A Debtor 4,100√
7. Returns outwards 8,400√
8. T. Chama – A Creditor 156,100√ 12,700√
9. Office Equipment 6,600√
10. Returns inwards
319,100√ 319,100√
@ tick =01 Mark x 10=10Marks
9.(b) JOURNAL ENTRIES
Date Details Debit Credit

(i) Suspense account 100,000√
Sales account 100,000√
(ii) Charles account 33,000√
Chacha account 33,000√
(iii) Suspense account 80,000√
Discount allowed account 80,000√
@ tick =1.2 Mark x 06= 05Marks
202
1. MULTIPAL QUESTIONS ( 10 marks)
I Ii iii Iv v vi vii Viii ix x
B A A A C D A C C D
1@ =10 Marks
2. MATCHING ITEM
GROUP A I ii Iii Iv V
GROUP B E D B C H
1@ =5Marks
3. (a) i) Unpresented cheques
ii) Uncredited cheques
iii) Bank charges

iv) Standing order
v) Direct deposits
vi) Dishonored cheque
vii) 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) Fines and pelnaties

ii) Grants
203
iii) Aid
iv) Foreign investment
Any five 2@ =10 marks
6. i) purchases journal
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 Total Cleanlin Postage General
number payment ess & expenses
telephone
2004
8400 Sept16 Bal b/d
11600 Cash
18 Courier 1 1500 1500
19 Donation 2 2000 2000
20 Office
cleaning 3 4000 4000
27 Postage 4 500 500
29 Detergent , 5
blushes, and
gloves 1200 1200
9200 5200 2000 2000
Balance c/d 10,800
2,0000 2,0000
10800 30 Balance b/d
9200 Cash
0.75@ = 15 marks
8.
Adjusted cash book
204
2004 2004
June 30 Bal b/d 786,000 June 30 bank charges 10,000
Interest 196,000 Standing order 10,000
Bal c/d 962,000
982,000 982,000
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
205
Date Particulars Amount Date Particulars Amount
1/1/2010 Cash 100,000 31/1/2010 Balance c/d 100,000 1.25 @=
1/2/2010 Balance b/d 100,000 15
2. Purchases account
Date Particulars amount Date Particulars Amount

1/1/2010 Cash 35,000 31/1/2010 Balance c/d 85,000
5/2/2010 Cash 50,000
85,000 85,000
1/2/2010 Balance b/d 85,000
3. Sale account
Date Particulars amount Date Particulars Amount
31/1/201 Balance c/d 122,000 3/1/2010 Cash 80,000
0
18/1/2010 Cash 42,000
122,000 122,000
1/2/2010 Balance b/d 122,000
4. Furniture account
Date Particulars Amount Date Particulars Amount
10/1/201 Cash 25,000 31/1/2010 Balance c/d 25,000
0
1/2/2010 Balance b/d 25,000
SECTION A
1. 1 mark @ each tick=total of 10 marks
I Ii Iii iv v Vi vii viii ix x
206
B B D D C B A D A D
2. 1mark @ each tick=total of 5 marks

LIST I Ii iii iv V
A
LIST B C F D B 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
207
vi) Insufficient fund in the account of the drawer to meet the amount written in a
cheque
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 POSTAG OFFICE WAGES LEDGER

E
28,800 1.3 Balance b/
71,000 1.3 Cash d
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
19,700 19,700
10.3 Stamps 3,800
11.3 Ndabila 3,800
10,400
13.3 Wages 10,400
10,000
15.3 Books 10,000 4,000
18.3 Nyagawa 4,000
90,300 32,600 22,200 20,100 15,400
19.3 Balance c/d 9,500
99,800 99,800
9,500 20.3 Balance b/
90,300 20.3 Cash d
8. 0.882 mark for each tick @17 ticks = 15 marks

KIDDO STATEMENT OF FINANCIAL POSITION AS AT 30th MAY 2016
DETAILS AMOUNTS AMOUNTS
208
ASSETS
NON-CURRENT ASSETS
Furniture and fittings 180,000
Land and buildings 848,000
Total Non-Current Assets 1,028,000
CURRENT ASSETS
Stock 180,000
Debtors 312,000
Cash in hand 50,000
642,000
Total Current Assets
TOTAL ASSETS 1,670,000
Less: LIABILITIES
CURRENT LIABILITIES
Creditors 160,000
1,510,000
Financed by;
Capital 1,140,000
Add; Net profit 656,000
1,796,000
Less; Drawings 286,000
1,510,000
9. 0.75 mark for each tick @ 20 ticks = Total of 15 marks
JOURNAL ENTRIES
209
S/NO DETAILS F DR CR
i) Suspense Account 4,400
Debtor Account 4,400
ii) Suspense Account 15,000

Obby Account 15,000
iii) Sales Account 1,500

Suspense Account 1,500
iv) Cash Account 232

232
Suspense Account
v) 6,132
Suspense Account
6,132
Returns Outward Account
DR SUSPENSE ACCOUNT CR
Debtor 4,400 Difference in trial balance 23,800
Obby 15,000 Sales 1,500
Returns outward 6,132 Cash
25,532 232
25,532

1. @ = 10 Marks.
I. II. III IV V VI VII VIII IX X
210
C C C D A C C D A B
@ item 1mark.
2.
I II III IV V
J F K H I
@Item 1 mark
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
v. Reliable financial position.
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
6. Below are the reasons for disagreement
211
vi. Unpresented cheque
vii. Uncredited cheque
viii. Standing order
ix. Dishonoured cheques
x. Bank charges
xi. Credit transfer
SECTION C 45 MARKS
ABC TRADERS
7. Income statement for the year ended 31st December 1998
Sales 18,462
Less cost of goods sold
Opening stock 3246
Add purchases 11380
Cost of goods available for sale 14629
Less closing stock (2548)

1.

C C C D B B B A D C
212
10 ticks @ 01 marks = 10 marks
2.

LIST B G D E A C

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.
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.
213
S/N TRANSACTION ACCOUNT TO BE ACCOUNT TO
DEBITED BE CREDITED
Purchased equipment from ODDO on Equipment  ODDO
credit
Returned to ODDO some of the equipment ODDO Equipment
bought from him
The proprietor, MAGU paid in a cheque Bank/Cash book Capital 
from his private funds.
Paid cash into bank Bank  Cash 
Rent received in cash Cash  Rent received
10 icks @ 01 marks = 10 marks

6. 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 CR
DATE DET F DISC. CASH BANK DATE DET F DISC. CASH BANK
AILS AL AIL RE
S
1.1.201 Balan b/ 3,500,00 20,000,0 31.1.2 Cred 1,500,0 28,500,00

8 ce d 0 00 018 itor 00 0
6.1.201 Sales 12,500,0 31.1.2 Ban C 15,900,000
8 00 018 k 
15.1.20 Debt 5,000,0 45,000,0 Bala c/d 100,000 52,400,00
18 or 00 00 nce 0
31.1.20 Cash C 15,900,0
18 00
5,000,0 16,000,0 80,900,0 1,500,0 16,000,000 80,900,00
00 00 00 00 0
1.2.201 Balan b/ 100,000 52,400,0

8 ce d  00

8. Journal entries
214
GENERAL JOURNAL
S/N DETAILS F DR CR
i. Suspense 100,000
Sales 100,000
ii. J. Mwajabu 250,000
J. Rajabu 250,000
iii. Rent 70,000
Suspense 70,000
iv. Suspense 300,000
Discount received 300,000
v. Sales 360,000
Motor van disposal 360,000
a. Suspense account
DR. SUSPENSE CR.
Sales 100,000 Difference in trial balance 330,000
Discount received 300,000 Rent 70,000
400,000 400,000
215
9. a. Income statement
MALIAN CO. LTD INCOME STATEMENT FOR THE YEAR ENDED 31st DECEMBER
2020
PARTICULARS AMOUNT AMOUNT AMOUNT
(TZS) (TZS) (TZS)
Sales 28,500,000
Less: Return inwards (1,000,000)
Net sales/Turnover 27,500,000
Less: Cost of goods sold
Opening inventory 9,500,000
Add: Purchases 11,500,000
Carriage inwards 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 (8,200,000)
Net profit 3,400,000
216
b. Statement of financial position
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
217
1.
I ii iii iv v Vi vii viii ix X
B A D D D A C C A D
2.
I ii iii iv V
E J I D 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
218
 Standing order
 Dishonoured cheque
 Bank charges
7.
THREE COLUMN CASH BOOK
Date Details Folio Disc Cash Bank Date Details Folio Disc Cash Bank
1998 1998
MAY MAY
01 Balance Bd 2500 7400 02 Purchases 2000
05 Sales 1800 06 Bank C 2000
06 Cash C 2000 07 A. John 45 1455
08 B.Shaw 200 3800 07 H. Hofman 90 2910
08 B. Benhim 150 2850 07 D. Jackson 420 13580
08 J. Malthus 160 3040 10. Office 3000
M.Chikawe 60 1440 furniture
22 cd 500
31 Balance 3855 15 Drawing
24 776
20 A.Adleman
1000
30 Wages cd 1464
570 5740 31 Balance 579
22945 5740 22945
DISCOUNT ALLOWED ACCOUNT

Date Details Folio Amount Date Detail Folio Amount
1998 1998
MAY MAY
08 B. Shaw 200 31 Balance cd 570
08 B.Benhim 150
08 J.Malthus 160
22 M.Chikawe 60
570 570
\ DISCOUNT RECEIVED ACCOUNT

1998 1998
MAY MAY
31 Balance cd 579 07 A. John 45
07 H.Hofma 90
07 D.Jackson 420
20 A.Adleman 24
579 579
219
8. IN THE BOOKS OF SABRINA HAMZA
PURCHASES DAY BOOK
Date Details Folio Invoice Detail Total Amount
MAY 01 IBRAHIM
10 Bags Jeans each 600 PL 01 10*600= 6000 6000
04 RISING STAR
2 Litres of cooking oil 500 per PL 02 2*500= 1000 1000
litre
04
NAIMA GENERAL SUPPLIER PL 03 10*2000= 20000 20000
10 dozen of bedsheet each 2000
15
KANDURU PL 04 100*600= 60000 60000
100 Litres 600 per dozen
30 PURCHASES ACCOUNT GL 87000
IBRAHMU ACCOUNT
MAY 31 Balance cd 6000 MAY Puchases 6000
01
6000 6000
RISING STAR ACCOUNT

MAY 31 Balance cd 1000 MAY O4 Purchases 1000
1000 1000
NAIMA GENERAL SUPPLIER ACCOUNT

MAY 31 Balance cd 20000 MAY 04 Puchases 20000
20000 20000
KANDURU ACCOUNT
MAY 31 Balance cd 60000 MAY 15 Puchases 60000
60000 60000
220
PURCHASES ACCOUNT
MAY 01 Ibrahim 6000 MAY 31 Balance cd 87000
04 Rising Star 1000
04 Naima Genera lsupplier 20000
15 Kanduru 60000
87000 87000
9. 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
Balance as pe Bank Statement (49700)

1. 1 Mark @ = 10 Marks.
221
B A A C B B C A D D
i ii iii iv v
A I H F C
i) Purchases journal.
ii) Purchases returns journal.
iii) Sales journal.
iv) Sales returns journal.
v) Cash book.
vi) General journal.
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.
222
iv) Government.
v) Financial institutions.
vi) Suppliers.
vii) Customers.
6. 1 Mark @ = 10 Marks.
Motor vehicle account Cash account
Insurance account Bank account
Drawing account Bank account
Van account Bank account
Cash account Sales account
7. 0.38 @ = 15 Marks.
DR MASUMBUKO'S THREE COLU

DISC
DETAILS CASH BANK
ALL
Balance b/d 4,600 9,300
8. 0.9 @ = 15 Marks.
223
STATEMENT OF FINANCIAL POSITION AS AT
31-Dec-10
TZS
NON-CURRENT ASSETS
9. 0.94 @ = 15 Marks.
Balance b/d 420,000 Bank charges
Cash 120,000 Standing order
Interest 15,000 Balance c/d
BANK RECONCILIATION STATEMENT

AS AT 31 DEC 2009
Balance as per Bank statement 396,000224
Add: Uncredited cheque 100,000
1.
i. ii. iii. iv. v. vi. vii. Viii. ix. x.
B D C B D B C A D A
2.
LIST B C E B G F

3.
S/N DEBIT CREDIT
a) Bank Account Cash Account
b) Salaries Account Cash Account
c) Bank Account Jane Account
d) Purchases Account Cash Account
e) Motor van 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. Sales journal
ii. Sales returns journal/returns inwards day book
iii. Purchases returns journal/ returns outwards day book
iv. Purchases journal
v. Cash book
225
6.
i. Personal Account
ii. Machinery Account
iii. Nominal Account
iv. Capital Account
v. Insurance Account
SECTION C (45 MARKS @15)

7. DR. MONICA’S TWO COLUMN CASH BOOK CR.
DATE DETAILS F CASH BANK DATE DETAIL F CASH BANK
S
2021 2021 1
1ST APRIL Capital L2 200,000 150,000 3RD APRIL Purchase L3 100,000 90,000
5TH APRIL Sales L4 300,000 200,000 10TH APRIL s C 250,000
10TH APRIL Cash C 250,000 20TH APRIL Bank L6 50,000
14TH APRIL Ipyana-loan L5 50,000 40,000 22ND APRIL Wages L3 150,000 100,000
25TH APRIL Sales L4 450,000 26TH APRIL Purchase L7 25,000
27TH APRIL Bank C 100,000 27TH APRIL Insurance C 100,000
28TH APRIL Sales L4 150,000 100,000 30TH APRIL Cash c/f 700,000 425,000
1,250,000 740,000 Balance 1,250,000 740,000
1st MAY Balance b/f 700,000 425,000
8.
PRINCE’S SALES DAY BOOK
DATE PARTICULARS INVOICE INVOICE INVOICE
NUMBER DETAILS TOTALS
2021
APRIL 1ST JUNIOR 80,000
10 dozen of Vitenge at 8,000 @ 250,000 330,000
25 dozen of khanga at 10,000@
APRIL 5TH MERCY

100 pairs of shoes at 2,000 @ 200,000
200 pairs of boots at 3,000 @ 600,000 800,000
APRIL 12TH BARAKA

100 dozens of exercise at 3000 @ 300,000
300,000 600,000
200 reams of papers 1500 @
APRIL 15TH NEEMA
5,000 5,000
Credit sales at 5,000
APRIL 22ND
STAR BOOK STORE
226
200 dictionaries at 2,500 @ 500,000
800 fiction book at 500 @ 400,000 900,000
APRIL 30TH Transfer to the credit side of sales account 2,635,000
GENERAL LEDGER
DR. SALES ACCOUNT CR.
DATE PARTICULAR F AMOUNT DATE PARTICULARS F AMOUNT
S
2021
30TH SUNDRY 2,635,000
APRIL DEBTORS
9.
MARO TRADERS LTD’S
INCOME STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2019
DETAILS SHS SHS SHS
SALES 620,000
LESS: SALES RETURNS 12,000
NETSALES 608,000
LESS: COST OF GOODS SOLD

OPENING INVENTORY 70,000
ADD: PURCHASES 350,000
CARRIAGE ON PURCHASES 15,000
365,000
LESS: PURCHASES RETUNS 5,000
NET PURCHASES 360,000
COST OF GOODS AV. SALE 430,000
50,000 380,000
LESS: CLOSING STOCK 228,000
GROSS PROFIT
ADD: OTHER INCOMES 10,000
COMMISSION RECEIVED 238,000
LESS: EXPENSES 8,000

CARRIAGE ON SALES 11,000
SALARIES & WAGES 7,000
ELECTRICITY 4,000
DISCOUNT ALLOWED 3,000
RENT 6,000 39,000
GENERAL EXPENSES 199,000
NET PROFIT
227
1. 1 Mark @ = 10 Marks.
C B C B A D B C A C
i ii iii iv v
H D A G B
(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.
228
(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.
PETTY CASH BOOK FOR THE MONTH OF A

VO TOTAL
RECEIP F DATE DETAILS
NO PAY
April
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.
229
(ii) Invoice price.
Invoice price = invoice price – Trade discount
Invoice price = 400,000 – 40,000 = 360,000
⸫ Invoice price = 360,000. ------------------------------------- 2.5 Marks.
(iii) 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.
(iv) 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.
KASSIM'S
DR THREE COLUMN CASH BOO
DATE DETAILS F CASH BANK DISC
1998
230
8. 0.42 mark @ = 15 Marks.
PANGONI ENTERPRISE CO. LTD INCOME STATEMENT

FOR THE YEAR ENDING 31 DEC 2019.
Sales
Les : Return inward
231
STATEMENT OF FINANCIAL POSITION AS AT 31 DEC 2019
NON-CURRENT ASSETS
Premises 1,000
Land and building 2,500
232
9. 0.68 @ = 15 Marks.
SIMON AND SONS LTD.

TRIAL BALANCE AS AT 31 DEC 1988
S/N PARTICULARS DEBIT
1Purchases 15,740
233
1.
C B A C D D C A B A
2.
i ii iii iv v
E C A G 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
v. Reliable financial position
6. 1.Real account
2.Personal account
3.Personal account
234
4.Real account
5.Nominal account
6. Nominal account
7. Nominal account
8. Personal account
9. real account
10. Personal account
7. SALES DAY BOOK
Date particular folio Invoice Invoice
details total
1/11/2020 BAGAMWEZI SL1
10 pairs of shoes @ TZS 13,000 130,000
20 meters of cotton cloth @ TZS 10,000 200,000
330,000
Less:trade discount ( 10%×330,000) (33,000) 297,000
16/11/2020 KAKAKUONA LTD 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) (12,500) 112,500
28/11/2020 KARIAKOO TRADERS SL3
10 rolls of curtains @ TZS 15,000 150,000
15 blankets @ TZS 8000 120,000
10 bed sheets @ TZS 12,000 120,000 390,000
30/11/2020 Transfer to sales A/C cr GL 799,500
235
SALES LEDGER
DR BAGAMWEZI A/C CR
Date Particular Folio Amount Date Particular Folio Amount
1/11/202 Sales day book 297,000
0
DR KAKAKUONA CR
Date Particular Foli Amount Date Particular Folio Amount
o
16/11/202 Sales day book 112,500
0
DR KARIAKOO LTD CR
Date Particular Folio Amoun Date Particular Folio Amount
t
28/11/202 Sales day book 390,000
0
GENERAL LEDGER
DR SALES A/C CR
Date Particular Folio amoun Date particular Folio Amount
t
30/11/2020 Sundry debtors 799,500
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
236
294,10 294,100
0
b) BANK RECONCILIATIO STATEMENT AS AT 31st DECEMBER, 2018
Start with balance as per adjusted cash book 281,600
Add: unpresented cheque 13,100
294,700
Less : uncredited cheque (41,000)
9. PETTY CASH BOOK

receip foli date particu Vouch total posta statio Travellin ledger
ts o lar er no ge nery g
expenses
24,000 1/1/2021 Cash
3/1/2021 statione 1 5000 5000
ry
10/1/202 Ruled 2 400 400
1 paper
15/1/202 postage 3 5000 5000
1
20/1/202 travellin 4 2000 2000
1 g
25/1/202 stamp 5 600 600
1
28/1/202 Benidic 6 8400 8400
1 tor
21,400 5600 5400 2000 8400
21,400 31/1/202 cash
1
31/1/202 Balance c/d 24,000
1
45,400 45,400
24,000 1/2/2021 Balance b/d
237
1. 1 Mark @ = 10 Marks.
D C D B C A A C C B
i ii iii iv v
H F G B D
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;
238
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) Real account.
ii) Real account.
iii) Nominal account.
iv) Real account.
v) Personal account.
5. 1 Mark @ = 10 Marks.
Cash account Mlasi account
Return inward account Kaiza account
Ibra account Sales account
Wages account Bank account
Stationary account Cash account
i) Debit note.
ii) Credit note.
iii) Sales invoice.
iv) Purchases invoice.
v) Petty cash voucher.
7. (a) 1 mark @ = 7 Marks.

Balance b/d 60,000 Bank charges
balance c/d
310,000
(b) 0.75 @ = 8 Marks.
239
BANK RECONCILIATION STATEMENT AS A 31/3/2010
Balance as per adjusted cash book
add: Unpresented cheque
8. 0.715 @ = 15 Marks.
DR TWO COLUMN CASH BOOK

DETAILS CASH BANK DETAILS
Balance b/d 500 10,000 Mpopoka
Tego 250 Rent
9. 0.883 @ = 15 Marks.
240
STATEMENT OF FINANCIAL POSITION AS AT…..
DESCRIPTION TZS
NON-CURRENT ASSETS
Machinery 3 ,0 0
1.
D c c b b c a B
1 mark @ each= 10
2.
(i) (ii) (iii) (iv) (v)
K b l f d
1 mark @ = 05
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
241
(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
242
7. Balance as per bank statement 1450
Add; Uncredited cheque 1905
Bank charge 128
Standing order 750 2783
4233
Less; Unpresented cheque 2830
Balance as per cash book 1403
8. (i)
DETAILS DR CR
Purchase a/c 850

Suspense a/c 850
Suspense a/c 90
Karungaru a/c 90
Carriage Inward a/c 230
Carriage Outward a/c 230
Sales a/c 160
Return Inward a/c 160
Return Iward a/c 320
Suspense a/c 320
Suspense a/c 715
Cash a/c 715
DR SUSPENSE ACCOUNT CR
Karunguru 90 Purchase 850 (ii)
Cash 715
Return Inwards 320
243
9. (a) INCOME STATEMENT AS AT 31ST DECEMBER, 2013
Sales 28,500
Les; Return inwards 1,000 27,500
Less; Cost of sales
Opening stock 9,500
Add; purchases 11,500
+ Carriage Inward 1,200
-Return Outward (800) 11,900
Less; Closing stock 2,000 19,400
Gross profit 8,100
Add; Other Incomes
Total incomes 11,600
Less; Expenses
Carriage Outward 1,700
Rent and Rates 1,500
Insurance 1,000 8,200
Net profit 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 57,000
CURRENT ASSETS
Debtors 9000
244
Bank 2000
Cash 3000
Stock 2000 16,000
CURRENT LIABILITIES
Creditors 17,000
Working capital (1,000)
FINNACED BY;
Capital 44,800
Add; net profit 3,400
48,200
Less; Drawings 2,200 46,000
LONG TERM LIABILITIES
Loan from CRDB 10,000 56,000
245
1.
List A i ii iii iv v Vi vii viii ix x
List B C C D C B A D B D A
2.
List B C M E G 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
246
Therefore sales amount is 210,000
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 Cr
Balance b/d 840000 Bank charges 36000
Direct deposit 240000 Standing order 290000
Interest received 30000 Balance b/d 784000
1110000 1110000
Balance c/d 784000
Bank reconciliation statement as at 31st december 2021

Balance as per bank statement balance method
Add; Uncredited cheque 200000
992000
Less; Unpresented cheque 208000
247
Balance as per adjusted cash book 784000
8. Dr Cash Account (1) Cr
Date Details Foli Amount Date Details Folio Amount
o
1/4/2015 Capital 2 200000 3/4/2015 Rent 7 6000
18/4/2015 Sales 5 6000 4/4/2015 Purchases 3 8000
6/4/2015 Postage 8 1000
8/4/2015 Drawings 9 5000
17/4/2015 Salaries 12 9600
19/4/2015 Advertising 13 7000
22/4/2015 Purchases 3 18000
24/4/2015 Furniture 14 10000
27/4/2015 Machinery 15 60000
28/4/2015 Wages 16 16000
30/4/2015 Balance c/d 57400
206000 206000
1/5/2015 Balance b/d 57400
9. Dr Suspense account Cr
Sales 100000 Balance b/d 330000
Discount received 300000 Rent 70000
400000 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 430000
Corrected net profit 7870000
248
1. i ii iii iv v vi vii viii ix x

C C A D B A D A A C
2. i ii iii iv v
H M O N I
3. i) Dishonouredcheque
ii) Bank charges
iii) Standing order
iv) Credit transfer
v) Unpresented cheque
4. ASSETS CAPITAL LIABILITIES

i. 157,000 86,500 68,500
ii. 335,500 247,000 88,500
iii. 273,100 209,600 63,500
iv. 415,800 281,500 134,300
v. 205,000 176,200 28,800
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 Adjusted cash book CR

7. Balanced b/d 72,820 Standing order 25,000 (a)
Bank charges 9,000
72,820 Balance b/d 38,820
72820
249
(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 Foli Invoice detail Invoice total

o
April 1 Salama
10 dozen of vitenge @ 8,000 80,000
25 dozen of khanga @ 10,000 250,000 330,000
5 Bujiku
100 pairs of shoes @ 2,000 200,000
200 pairs of boot @ 3,000 600,000 800,000
12 Mkwema
100 dozen of exercise @ 3,000 300,000
200 reams of papers @ 1,500 300,000 600,000
15 Mwakalenge
Goods worth @ 5000 5000 5,000
22 Mikumi bookstore
200 advanced learner’s dictionary
@ 2,500 500,000
800 fiction books @500 400,000 900,000
April 30 GL 2,635,000
9. (a) INCOME STATEMENT AS AT 31ST DECEMBER 2012

DETAILS TSHS TSHS TSHS
Sales 328,300
Less sales return 1200
Net sales 327,100
Less: cost of goods sold
Add: purchases 157,000
Add: carriage inwards 5000
157,900
Less: return outward (3100)
Cost of goods available of sale 192,700
250
Less: closing stock (30,300)
Less: goods sold (162,400)
Add: income: Rent received 54,00
170,100
Less: Expenses
Carriage outwards 1400
Wages and salaries 93,100
Advertising 11800
Total expenses (106,300)
Net profit 63,800
b.
DETAILS TSHS TSHS TSHS
FIXED ASSET
Premises 380,000
Fixture and fitting 105,000
Total fixed asset 485,000
CURRENT ASSETS
Stock 22,400
Debtor 30,300
Cash at bank 20,100
Cash at hand 600
Total current asset 73,400
Less: CURRENT LIABILITIES
Creditors (18,700)
Working capital 54,700
FINANCED BY
Capital 549,500
Add: net profit 63,800
613,300
Less: drawings (73,600)
251

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Form 2

FORM TWO BOOK-KEEPING NEW

BUSINESS TEACHERS OF TANZANIA (BTOT)

TIME: 2:30 Hours.________________________________________________

ii. Answer all questions in all sections.

iii. All writings must be in blue or black ink.

FOR EXAMINERS USE ONLY

Series No. 29...........................................................................................................................................133

(i) (ii) (iii) (iv) (v)

SECTION B (20- MARKS)

(b) Mention five sources of Government funds

S/N ASSETS LIABILITIES CAPITAL

S/N Transactions Account to be Account to be

SECTION C (45 MARKS)

i. The amount required to restore the imprest amount is equal to -------

v. The following are example of real account

vi. Which of the following is an example of nominal account ?

viii. The exchequer account is under the control of

ix. The term “Nugatory expenditure refers to

TRANSACTION ACCOUNT TO BE ACCOUNT RTO BE

Owner put cash into business

4. Define the following terms

6. List five objective of studying bookkeeping in a business matters

S/N NAME OF ACCOUNT DR CR

REQUIRED: Re-draft the above trial balance

SECTION B (40 Marks)

5. Complete the following table by showing accounts to be debited and which to be

S/N TRANSACTIONS ACCOUNT TO BE ACCOUNT TO BE

6.Identify the effect of transaction on components of accounting equations.

SECTION C (45 Marks)

8. Mjimwema’s financial position on 1st January 2019 was as follows:-

9. The following information relates to Msamvu sokoni traders as at 31/12/2018

SECTION A (15 Marks).

ii) The following are sources of government revenue except.

v) The cost of borrowing money is known as;

vii) The term “expenses” denotes

viii) A trade discount is best described as;

ix) Bookkeeping is the branch of accounting which deals with;

i ii iii iv v vi vii viii ix x

SECTION B (40 Marks).

(b) Mention five source documents used in the business transactions.

May 15: Sold to Hibba training center.

SECTION C (45 Marks).

Capital ………………………………………….. 140,000.

SECTION A (15 Marks)

SECTION B (40 Marks)

SECTION C (45 Marks)

8. Makonji’s financial position on 1st January 2019 was as follows:

January1 Drew Cash from Bank for office use 500

SECTION A (15 MARKS)

v. Another name for two column cash

vi. At the beginning of accounting year

LIST A i. ii iii. iv. v

6. Identify whether the following accounts are nominal, real or personal.

S/N NAME OF ACCOUNT CLASS OF ACCOUNT

SECTION A: (20 Marks)

(iii) How does the contra entry occur?

(x) Which of the following statement is incorrect?

(i) (ii) (iii) (iv) (v)

SECTION B (40 Marks)

SECTION C (45 Marks)

Cash Tshs. 29,000

Date Particulars DR CR Balance