PRESIDENT’S OFFICE,

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

KIBAHA DISTRICT COUNCIL

FORM THREE ANNUAL EXAMINATION – NOVEMBER 2022

CODE: 062 BOOK KEEPING

TIME: 3:00 HOURS MONDAY: 28 TH NOV, 2022

INSTRUCTION
1. This paper consists of sections A, B and C with a total of nine (9) questions.
2. Answer all questions in sections A, B and two (2) questions from section C.
3. Section A carries 20 marks, section B and C carries 40 marks each
4. Non programmable calculators may be used.
 SECTION A (20 Marks)
Answer all questions
1. For each of the items (i) – (xv) choose the correct answer from the among given alternative and write its
letter beside the item number in the answer sheet provided.
i. A provision for bad debts is created when
A. Debtors become bankrupt
B. Debtors become obsolete
C. I need of writing off bad debts
D. In need of creating bad debts
E. Debtors cease to be in business.

ii. The total of the purchases Journal is transferred to the

A. Credit side of the purchases account
B. Debit side of purchases day book
C. Credit side of the sales journal
D. Debit side of the purchases account
E. Credit side of the sales account.

iii. Given cost of goods sold 16,000,000 and margin 20%, then calculate net profit, if advertising is 13%
of. Then net profit is:
A. TZS. 704,000
B. TZS. 1,400,000
C. TZS. 3,200,000
D. TZS. 406,000
E. TZS. 4,500,000

iv. Which of the following would not appear in the sales ledger control account?
A. Discount allowed
B. Discount disallowed
C. Bad debts
D. Provision for doubtful debts
E. Discount received

v. The equivalent of profit made by business organization is:

A. Subscription received
B. Surplus of expenditure over income
C. Deficit
D. A surplus of income over expenditure
E. None of these

vi. If a trial balance does not agree, the difference must be entered in
A. The profit and loss account
B. A suspense account
C. The capital account
D. Purchases account
E. Nominal account

vii. Given balance as per cash TZS. 6,500. Uncredited cheque TZS 1,500, bank charges not yet entered in
the cash book TZS 500 and credit transfer received by the bank but not yet entered in the cash book
TZS 1,000. What will be the balance as per bank statement?
A. TZS 8,500
B. TZS. 6,500
C. TZS. 4,500
D. TZS. 5,500
E. TZS. 7,500
viii. Ensuring that profit shown not being too high, that assets are not shown at too high value and the
financial statements are neutral. That is neither gains nor losses are overstated or understated
A. Prudence concept
B. Materiality concept
C. Full disclosure
D. Realization
E. Substance over form

ix. Which of the following is correct about residual value?

A. It is equal of the cost of the asset
B. It is equal to the net book value
C. It is equal to the value of the material that produced asset
D. It is equal to accumulated depreciation
E. Is the amount predicted to be received from disposal of asset?

x. The capital in the start of the business was 120,000. At the end of the year was 142,000. Drawings
was 1000 per mount. What was the net profit?
A. 21,000
B. 23,000
C. 22,000
D. 34,000
E. 42,000

xi. A debit balance of 5,000 in cash account shown that

A. Cash has been overspent by 5,000
B. 5,000 was the total of cash paid out
C. The total of cash received was less than 5,000
D. There were 5,000 cash in hand
E. 5,000 was the total of cash received

xii. Given cash float of TZS7,000 if TZS 5,410 is spent in the period and the opening cash float hand
been TZS7,000, how much will be reimbursed at the end of the period?
A. TZS 5,410
B. TZS 17,000
C. TZS 12,410
D. TZS 1,590
E. TZS 7,000

xiii. A cheque paid by a customer but not yet passed through the banking system is called
A. Stale cheque
B. Dishonored cheque
C. Postdated cheque
D. Unpresented cheque
E. Uncredited cheque

xiv. Which document is used to deposit money in current account?

A. Cheque book
B. Pay-in- slip
C. Bank statement
D. General ledger
E. Cash book
 xv. What would you consider to be the main source of government revenues?
A. Royalties
B. Penalties
C. Taxes
D. Interest
E. Fees

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

LIST A LIST B
i. Officer appointed in writing by paymaster general and charged with A. C.A.G
duties of accounting of public money. B. P.M.G
ii. Officer responsible for collection, management and expenditure of C. Accounting officer
public revenue. D. Authorized officer
iii. Officer appointed by president to carry out the control of public fund. E. Collector of revenue
iv. Officer appointed by receiver of revenue with the charge of collecting F. Receiver of revenue
and accounting the revenue. G. Treasurer
v. Person appointed by the minister of finance with charge and
responsibility of controlling the issue of public fund.

SECTION B (40 MARKS)

Answer all Questions

3. Mswahili is very reluctant business owner. He claims that, preparing financial statements is the wastage of
time because they end up being used by the business owner himself. Briefly explain to him to clear his claim.
(Five points).

4. On 1st January 2015 Mikuyu Motors Company Ltd purchased motor lorry worth 12,000. The company used
asset for three years on 31st December 2017 the lorry was sold for 3,000 it is the policy of the company to
compute depreciation using straight line method.
Using the information provided, prepare the motor lorry and the provision for depreciation on motor lorry
Account for the three years (31st December 2015, 2016 and 2017).

5. In your school, the form three students are not much competent in double entry records. You as a competent
student help them by using transactions indicated in the below table:
S/N TRANSACTION ACCOUNT TO BE ACCOUNT TO BE
DEBITED CREDIT
i. Bought goods by cash
ii. Sold goods by cheque
iii. Credit purchase from Moza
iv. Sold goods on credit to Tabu
v. Paid Cash into Bank
6. Prepare Sales Ledger Control Account from the following information extracted from the record of Wande
Co. Ltd
At August 1:
Sales ledger debit balance …………………………………………………….…. 381,600
Sales ledger credit balance ……………………………………………………….…2,200
Transactions for the month:
Cash received ………………………………………………………...….…….……10,400
Cheque received ………………………………………………………….…….…623,900
Sales ………………………………………………………………………………. 709,000
Bad debts written off …………………………………………………………….…30,600
Discount allowed ……………………………………………………………….… 29,800
Returns inward ……………………………………………………………………. 66,400
Cash refunded to a customer who had over paid …………………………………...3,700
Dishonored cheque …………………………………………………………………2.900
Interest charged on customers over due date ………………………………………5,000
Carriage charged to debtors ………………………………………………………... 6,400
Set off against purchases ledger ……………………………………………………14,300
At August 31:
Sales ledger debit balance …………………………………………………………. 335,000
Sales ledger credit balance ………………………………………………………… 4,000

SECTION C (40 MARKS)

Answer two (2) Questions from this Section.
7. Mlandizi Social club had the following assets and liabilities on 31st December 2014.
T. shirts for sale 5,000
Subscription in arrears 600
Account payable (T. shirt supplies) 640
Computer 6,000
Prepaid rent 250

For the year ended 31st December 2015 the club`s receipts and payments account was as follow:
RECEIPTS PAYMENTS
Balance b/d 10,200 Account payable (T-shirt) 200
Subscription 8,000 Furniture 3,750
Sale of old computer 4,000 Salaries 1,240
T. Shirt sales 8,500 Football expense 560
Gate collection 13,000 Rent 600
Donations 9,000 New computers 1,120
Stationaries 300
52,700 Utilities 150
Balance c/d 44,760

52,700

Additional information
i. The disposed computer had a book value of 3,800
ii. Non – current assets are depreciated at 10% p.a
iii. The net profits from T. Shirts were 3,500
Required
a) Determine the amount of accumulated fund at 31st December 2014
b) Prepare a statement of income and Expenditure for the year ended 31st December 2015
8. Bwana Mayowe has given the following information concerning his transaction for the month of
March 2018
March 1. Cash balance 54,000 debit, bank balance 150,000 credit
March 2. Received cheque from Kalulu 182,000 after deducting cash discount 1,000
March 5. Withdrew 6,500 from bank for personal use
March 9. Paid Kato by cheque 5,200 after deducting 520 cash discount
March 12. Received 12,600 cash and 11,500 cheque from Kichoge
March 15. Deposited 40,000 cash into Bank
March 19. Bought a computer 60,000 and paid half amount by cheque on account
March 22. Bought stationary 14,800 cash
March 24. Sold some old furniture and received cash 7,500
March 28. Paid Exim Bank loan 15,000 by cheque
March 29. Withdrew 16,000 from bank for office use
March 31. Paid Salaries 2,000 cash and 35,000 by cheque

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

9. The following trial balance was extracted from the books of Sungura stores on 28th February 2018

DETAILS DR CR
Purchases and sales ………………………………………………… 9,280,000 15,716,500
Cash at bank ………………………………………………………... 410,000
Cash in hand …………………………………………………………. 32,400
Capital account 1st march 2017 ……………………………………… 1,140,000
Drawings ……………………………………………………………. 1,710,000
Office furniture ……………………………………………………… 2,290,000
Rent …………………………………………………………………. 340,000
Wages and salaries ………………………………………………… 314,000
82,000 16,000
Discounts ……………………………………………………………
123,200 524,500
Accounts receivable and payable
Inventory 1st march 2017…………………………………………. 412,000
Delivery van ……………………………………………………… 2,309,000 40,500
Provision for doubtful debts……………………………………….
Van running costs …………………………………………………. 61,900
Bud debts written off ………………………………………………. 73,000
17,437,500
17,437,500

Notes
a) Inventory on 28th February 2018, 240,000
b) Wages and salaries accrued at 28th February 2018 16,000
c) Rent prepaid at 28th February 2018, 23,000
d) Van running cost owing at 28th February 2018, 7,200
e) Increase the allowance for doubtful debts by 9,100
f) Provide for depreciation as follows
Office furniture 38,000; delivery van 125,000

Use the information provided to prepare Sungura stores income statement for the year ending 28 th February
2018 and the statement of financial position as at 28th February 2018.