THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, LOCAL ADMINISTRATION AND LOCAL GOVERNMENT
FORM FOUR BOOK KEEPING EXAMINATION MAY
Time 3:00 Hours MAY 2020
Instructions
SECTION A (20 Marks)
Answer all questions in this section.
(i) A credit balance of sh. 20,000 on the cash column of the cash book would mean that
(ii) Sales invoices are first entered in the
(iii) Which of the following are the examples of revenue expenditure?
(iv) Which of the following is treated as current assets in the preparation of statement of financial position?
(v) The total of the Returns Outwards Journal is transferred to the
( vi) If current account is maintained then the partners’ share of profit must be
(vii) The value of closing inventories is found by
(vii) Depreciation can be described as the
(ix) If it is required to maintain fluctuating capitals then the partners’ share of profits must be
(x) Which of the following is NOT an asset?
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 in your answer booklet.
Column A | Column B |
(i) The profits of the company expressed as a percentage of the owners investment. (ii)The gross and net earnings expressed as a percentage of sales. (iii) Current assets compared to current liabilities. (iv) Very liquid assets compared to immediate liabilities. (v) The number of days of sales held in stock. (vi)The number of days of purchases represented by creditors. (vii) The number of days of sales represented by debtors. (viii) The ratio of fixed interest capital to equity capital. (ix) Compares the amount of profit earned per ordinary share with the amount of surplus paid. (x) The ratio of prior charge capital to ordinary share capital and reserve |
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SECTION B (20 Marks)
Answer all questions in this section.
3. (a) State five advantages of using books of original entry.
(b) Briefly explain five types of errors which do not affect the agreement of a trial balance.
4. (a) Identify the accounts in which entries should be made to record each of the following transactions:
Transactions | Dr | Cr |
(i) Bought stock on credit from Omondi. |
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(ii) Sold goods on credit to Muita |
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(iii) Bought a motor vehicle in cash. |
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(iv) Paid for electricity by cheque. |
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(v) Returned goods to a supplier, Nkatha. |
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(b) Identify five errors that may be revealed by a Trial Balance.
SECTION C (60 Marks)
Answer all questions in this section.
5. (a) (i) Prepaid rent at the beginning of the period was sh. 40,000 and sh. 20,000 was not paid last year. During the year payments of sh. 320,000 was made with respect to rent. It was established that at the end of the period prepaid rent should be sh. 60,000. Without using Taccount compute the amount of rent expenses to be transferred to profit and loss account.
(ii) Accrued wages at the beginning of the month was sh. 240,000. At the end of the month sh. 690,000 was transferred to profit and loss account and sh. 10,000 was prepaid. Sh. 320,000 of wages was accrued but not yet paid during the month. Without using Taccount compute the amount of wages paid during the year.
(b) Outline five importance of a profit and loss account.
6. (a) Majura and Majuni enter a joint venture to share profits or losses equally resulting from dealings in secondhand digital TVs. Both parties take an active role in the business, each recording his own transactions. They have no joint banking account or separate set of books.
2011
July 1 Majura buys four TVs for a total of sh. 110,000.
3 Majura pays for repairs sh. 84,000.
4 Majuni pays office rent sh. 30,000 and advertising expenses sh. 9,000.
6 Majuni pays for packaging materials sh. 3,400.
7 Majuni buys for a TV in excellent condition for sh. 60,000.
31 Majura sells the five TVs to various customers, the sales being completed on this data and totalling sh. 310,000.
Show the relevant accounts in the books of both joint ventures.
7. On 31st December, 2008 the bank column of Tengeneza’s cash book showed a debit balance of sh. 15,000. The monthly bank statement written up to 31st December, 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. 6,90 had been paid into the bank on 31st December, 2008 but were not credited by the bank until 2nd January, 2009.
(i) Bring the cash book (bank column) up to date, starting with the debit balance of sh. 15,000, and then balance the bank account.
(ii) Prepare a bank reconciliation statement as at 31st December, 2008.
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING MODAL SERIES 15
LEARNING HUB TANZANIA
FORM FOUR MODEL EXAMINATIONS
TIME 3:00 HRS BOOK-KEEPING
NAME: ………………………………………………….. STREAM ……………………………
Instructions
SECTION A
i) Juma`s balance sheet showed opening capital of 15,000/-, Next Loss of 5,000/-and drawings of 3,000/-. What do you think was his closing capital?
ii) A receipt and payment account is one:
iii) Capital land drawings accounts are classified as:
D. Impersonal accounts
iv) Books of prime Entry are also mentioned as:
v) Capital can be increased by:
vi) Position the transaction in book keeping means:
vii) Depreciation is:
viii) If creditors at 1st January have 2,500/- creditor 1.12.1993 Shs. 4,200/- and payment to creditors to shs 32,000/- then purchases for 1993;
ix) Which is the best description of fixed asset?
x) A credit balance of sh. 20,000 on the cash column of the cash book would mean that;
A. the business owner has Tsh. 20,000 cash in hand.
B. the bookkeeper has drawn Tsh. 20,000 in his cash book.
C. the shop keeper lost Tshs. 20,000 from the business.
D. the shop keeper sold goods on credit for Tsh. 20,000.
E. the business owner spent Tsh. 20,000 more than he/she has received.
xii) Sales invoices are first entered in the
A. cash book
B. purchases journal
C. sales account
D. sales journal
E. purchases account.
(xiii)An authority letter issued by the Accounting Officer or his deputy covering the authority for specific expenditure is called;
A. ambit of the vote
B. warrant of funds
C. virement
D. reallocation warrant
E. warrant holder.
(xiv)Which of the following are the examples of revenue expenditure?
A. Purchases of goods and payment for electricity bill in cash
B. Repair of van and petrol costs for van
C. Buying machinery and paying for installation costs
D. Electricity costs of using machinery and buying van
E. Buying van and petrol costs for van. (xv).When the financial statements are prepared, the bad debts account is closed by being transferred to
A. balance sheet.
B. profit and loss account.
C. trading account.
D. provision for doubtful debts account.
E. profit and loss appropriation account
MATCHING ITEM QUESTION
GROUP A
GROUP B:
i) ……………… is the book use to record details and amount of all goods purchased on credit
ii) All allowance educated from the catalogue price when goods are brought in large quantities are called …………….
iii) The total approved expenditure by the parliament for various services during financial year starting on 1st July of the current year to 30th June of the preceding year is called………….
iv) The amount of unsold goods available at the beginning of the trading period is called ……………..
v) The different between assets and current liabilities is known as ………………
SECTION B:
(a) Purchase of an extra motor van
(b) Cost of rebuilding warehouse wall with had fallen down
(c) Building extension to the warehouse
(d) Painting extension to warehouse when it is first built
(e) Repainting extension to warehouse three years later than that done in (d)
(f) Carriage coasts on bricks for new warehouse extension
(g) Carriage costs on purchases
(h) Carriage cost on sales
(i) Legal charges on airing new premises for office
(j) Legal charges on acquiring new premise for office
(k) Fire insurance premium
(l) Cost of creating new machine
Year ended 31.12 | Debtors | Provision for bad | Provision for discounts allowed % |
1994 | 4,000 | 200 | 2 |
1995 | 5,000 | 350 | 2 |
1995 | 4,750 | 250 | 2 |
| Dr | Cr |
Purchases | 4,380 |
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Business expenses | 950 |
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Discount received | 46 |
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Returns inwards |
| 85 |
Sales |
| 7,430 |
Trade creditor |
| 2,735 |
Cash in hand | 1, 020 |
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Furniture and fittings | 1,750 |
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Trade debtors | 2,130 |
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Stock 1.1. 2010 |
| 2,597 |
Drawings | 2,800 |
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Capital | 5,550 | _____ |
| 16,446 | 14,977 |
In addition to the mistakes evident above, the following errors were also discovered
Required: Show trial as it would appear after all the errors had been corrected. You are required to show all workings.
Building | 1.1.2001 | 31.12.2001 |
Motor van | 10,500 | 10,000 |
Fixtures | 10,000 | 9,500 |
stock | 12,000 | 11,500 |
Debtors | 18,600 | 21,400 |
Creditors | 6,200 | 9,500 |
Rent Owings | 900 | 500 |
Rates prepaid | 1,000 | 300 |
Bank balance | 10,000 | 17,000 |
Your are also informed that Michael Jordan made drawings to be extended of Shs. 8.000/- during the period. He has introduced additional capital of Shs. 5.000/-. You are required to prepare a statement of profit and loss for the yearended 31.12.2001.
SECTION C
(b)Mention Auditors working papers and outline their contents
(c)Briefly explain the different opining of Auditors report.
8. Sinahamu Tena traders bought a motor van on1 st January, 2014 at sh.1,800,000 estimated to last five years after which it have a scrap value of sh.300,000.The van was sold on 31 ​st​ December, 2016 at Tsh. 1,000,000 and the payment made by cheque.
From the above information prepare:(i)Motor van account(ii)Provision for depreciation on motor van account(iii)Disposal of motor van account.
9. The following balances were extracted from the books of PRMBC at 31 October 2012. You are require to prepare manufacturing Account, Trading Profit and loss account as that date.
Stock at 1st October 2012
Raw materials 5,600
Work in progress 7,200
Finished goods 26,000
Purchases of raw materials 44, 000
Sales of finished goods 296, 000
Factory wages (Direct) 108, 000
Repair of motor vehicles 3,600
Depreciation on machines 7,200
Power for factory ( Indirect) 2,800/=
Factory salary 16,400/=
Office Rent 1,600/=
Selling expenses 6,400/=
Salary and wages (ware house) 9,000/=
Light and heat ( factory, offices) 12,000/=
Stock at 31 october 2012
Raw materials Tshs. 4,600/=
Work in progress Tshs. 6,200/=
Finished goods Tshs. 24, 000/=
Sales of finished goods 257,000/=
1
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING MODAL SERIES 5
BOOKEEPING FORM FOUR 2019
MODEL ANNUAL EXAMS.
Time 3 Hours
Instructions :-
- This paper consist of sections A B and C.
- Answer all questions in section A and B and only two questions from section C
- Cellular phones are not allowed in Exam room
SECTION A.
(i) The movement of money or money worth from one person to another in exchange of Goods and services is called:-
(ii) A statement showing a list of debit and credit of account extracted from ledger is called.
(iii) Money or money worth taken out of business for personal use:-
(iv) The aim of preparing trading profit and loss account is:-
(v) In trading account the return inward should be:-
(vi) Which of the following is not an assets
(vii) Sales invoices are first entered in the:-
(viii) Which of the following is treated as current assets in the preparation of statement of financial position.
(ix) A cheque which was not accepted for payment by the bank due to insufficient reffered to as:-
(x) A credit balance of sh. 20,000 on the cash book would mean.
(xi) Which of the following is the revenue Expenditure.
(xii) Prime cost include:-
(xiii) Suspense account can be maintained when:-
(xiv) Given opening capital Tshs. 33,000 closing capital Tshs. 22,700 and drawings Tshs. 6,600 then.
(xv) The expenditure for which Government has received no value example payment for services not rendered is called:-
2. Match the item in column A with the response in column B by writing the letter of correct response beside the item number.
LIST A | LIST B |
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SECTION B 40 Marks
3 (a) Explain five (5) differences between capital expenditure and revenue expenditure.
(b) Explain any five (5) errors which do not affect the Trial balance.
4 (a) Name four advantages of Double entry system.
(b) Complete the following table by indicating the account to be debited and account to be credited and account to be credited:-
(i) Cash deposited into Bank.
(ii) Cash draw for personal use.
(iii) Cheque received from debtors.
(iv) Purchases of motors van by cash.
(v) Cash drawn for Personal use.
5. You have been given the following information as at 31 December 2000.
Balance as per cash book shs. 123,000
Balance as per Bank statement shs. 95,000
Unpresented cheque shs. 25, 000
Uncredited cheque shs. 43, 000
Bank charges shs. 5, 000
Standing order shs. 20, 000
Direct deposit in the bank shs. 15, 000
Require:
(a) Prepare bank reconciliation statement without adjusting the cash book.
(b) Adjust the cash book.
6. You are provided with the following information:-
Sales 90,000/=
Purchases 35,000/=
Expenses 30,000/=
Stock at 1th January 2015 5,000/=
Stock at 31 december 2015 5,000/=
Return Inward 400
Return outward 500
Required calculated.
(i) Cost of sales
(ii) Gross profit
(iii) Cost of goods available for sales
(iv) Net sales
(v) Net profit
SECTION C
Choose any two questions (40%)
7. The following balances were extracted from the books of PRMBC at 31 October 2012. You are require to prepare manufacturing Account, Trading Profit and loss account as that date.
Stock at 1st October 2012
Raw materials 5,600
Work in progress 7,200
Finished goods 26,000
Purchases of raw materials 44, 000
Sales of finished goods 296, 000
Factory wages (Direct) 108, 000
Repair of motor vehicles 3,600
Depreciation on machines 7,200
Power for factory ( Indirect) 2,800/=
Factory salary 16,400/=
Office Rent 1,600/=
Selling expenses 6,400/=
Salary and wages (ware house) 9,000/=
Light and heat ( factory, offices) 12,000/=
Stock at 31 october 2012
Raw materials Tshs. 4,600/=
Work in progress Tshs. 6,200/=
Finished goods Tshs. 24, 000/=
Sales of finished goods 257,000/=
8. The following Detail related Chitahuma Charitable club. 2015.
January December
Premises 450,000 360,000
Club furniture 67,500 60,750
Sport equipment 45,000 57,000
Bar man’s outstanding 2,700 3,375
Subscriptions outstanding 4,050 3,375
Subscription received in advance 1,800 1,080
Repair to sports equipment bill due 5,400 3,870
Refreshment stock 13,500 8,775
Insurance prepaid 720 360
Cash in the Hand 15,300 21,600
Bank overdraft 25,560 24,030
Refreshment creditors 19,440 8,640
Bar debtors 9,000 11,250
Receipts and payments accounts for the year ending 31st December 2015.
9. On 1st January 2015 F. Wood head the following assets and liabilities.
Cash at Bank Tsh.
Stock 1,400,000
4,000,000
Debtors W. Kamau 1,500,000
R. Nundu 960,000
Creditors J. Polo 1,300,000
S. Matoke 850,000
Office equipment 4,200
Motor Van 3,200,000
His transactions during the month of January were as follows:-
January 2 – Withdraw Shs. 200,000 from Bank for office use.
January 2 – Purchased goods from J. Polo Shs. 250,000 on credit.
January 4 – Bought office stationary for cash 36,000
January 7 – Received cheque 940,000 from R. Nundu in full settlement less 20,000 cash discount.
January 12 – Sold goods to W. Kaman shs. 1,400,000 on credit.
January 14 – Paid salaries shs. 80,000 in cash.
January 15 – Paid S. Matoke shs. 600,000 by cheque
January 16 – Returned goods worth sh. 30,000 to J. Polo and received credit note
January 20 – Bought office equipment shs. 145,000 on credit from Patel Brothers
January 23 – Sold all goods on hand receiving Shs. 1,250,000 cash and shs. 5,000,000 by cheque
January 27 – Paid patel brothers shs. 130,000 in cash
Details | Amount | Details | Amount |
Cash in Hand b/f | 15,300 | Bank b/f | 25,560 |
Subscriptions | 225,000 | Stationary | 77,625 |
Bar and restaurants |
| Electricity | 10,395 |
Receipts | 177,300 | Wages | 105,660 |
|
| Insurance | 18,000 |
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| Sports equipments | 27,000 |
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| Repair to sport | 33,000 |
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| Refreshment | 90,000 |
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| General expenses | 15,750 |
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| Advertising | 8,820 |
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| Cash in Hand |
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| cf | 21,600 |
| 441,630 |
| 441,630 |
As a newly appointed club treasurer prepare for the club members the following
(i) Statement of affairs as at 1st Jan 2015
(ii) Bar trading account for year ending 31st December 2015
(iii) Income and expenditure account for year ending 31 December 2015.
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING MODAL SERIES 4