PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT KINONDONI MUNICIPAL, BAGAMOYO DISTRICT COUNCIL AND KIBAHA TOWN COUNCIL FORM FOUR PRE - NATIONAL JOINT EXAMINATIONS BOOK - KEEPING CODE: 062 TIME: 3:00 HOURS Wednesday, 21" August, 2019 PM | INSTRUCTIONS 1, This paper consist of section A, B, and C with a total of nine (9) questions. 2. Answer all questions in section A and B and two (2) questions from section C 3. All writing must be in blue or black Ink 4. Cellular phones, Calculators and all any unauthorised materials are not allowed in the examination room. 5. Write your examination number on every page of your answer booklet(s). This paper consists of 6 printed pagesSECTION A: (20 MARKS) Answer all questions in this section For each of the items (I) - (xv), choose the correct answer from the given alt and write its letter beside the item number. a (i) Acredit balance brought down on a Rent account means (a) We owe that rent at that date (b) We have paid that rent in advance at that date (c) We have paid too much rent (d) We have paid too little In rent (e) We have not paid rent at that date [4 (il) ‘The credit entry for net profit is shown in the (a) Capital account (b) Profit and loss account (©) Appropriation account (d) Trading account (e) Receipts and payments account [to] (ili) An authority letter issued by the Accounting officer or his deputy covering the authority for specific expenditure Is called (a) Ambit of vote (b) Warrant of funds (c) Virement (d) Reallocation warrant (e) Warrant holder G i (v) The straight line method of depreciation consists of :- (a) Unequal amounts of depreciation in each year (b) Increasing amounts of depreciation in each year (c) Reducing amounts of depreciation in each year (d) Equal amounts of depreciation in each year (e) Double diminishing amount of depreciation in each year ce 4 (v) Which of these errors would be disclosed by the trial balance? (a) Error on a purchase invoice (b) Purchases from K. Kayoyo entered in C. Mtutuma account (0) Carriage outwards debited to sales account (d) Overcast of total on sales account (e) Cash sales omitted in the books c (vi) A cash discount is described asa ceduction in the sum to be paid if (a) goods are bought on credit and not for cash (b) either cheque ox cash payment is made promptly (c) cash paid instead of cheques (d) Trade discount is also deducted (e) Cheque is paid instead of cash t-4 (vii) Which of the following Is treated as current assets in the preparation of statement of financial position? (a) Unarmed revenue (b) Accrued expenses _(c) Accrued revenue (d) Depreciation expenses (e) Accumulated depreciation Co] . |(vin) (x) () (xi) il) ili) (iv) (ov) What will happen If 7500/= will be added to rent Instead of being added to fixed assets? (a) Gross profit would not be affected (b) Net profit would be alfected {< ) Gross and Net profit would be affected ‘d) Net profit would not be affected Neither gross profit nor net profit would be affected (a) (e Customer's personal accounts are found in _ (a) Private ledger (b) General ledger (c) Purchases ledger = (4) Nominal ledger (e) Sales ledger f= 9 7 In a commercial business, an accumulated fund would be known as (a) Fixed assets (b) Capital (c) Total assets (d) Net current assets (e) Long term liabilitles Coal 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 (e) Prudence concept Which of the following Is not a method of depreciation (a) Fixed installment method () Depleletion method (c) Reducing balance method —_(d) Machine hour rate method | (e) Appreciation method to] | Which of the following documents does a book - keeper needs 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 (e) The receipt Which one among the following is a long - term liabilty? (a) Overdraft (b) Creditors (c) Drawings (d) Bank loans —_(e) Acrued expenses [oJ Which pair among the following is not fixed assets? (a) Stock and prepaid expenses (b) Land and buildings (c) Fixtures and fittings (d) Motorvehicles and spares (e) Machinery and Furniture {t J 2. Match the items in List A with the responses in List B by writing the letter of the correct response beside the number in the answer booklet provided LIST A usTB (i) A ledger for customer's personal account A: Bought journal (ii) Book of original entry used to record prompt receipt |B: Purchases invoice and payments C: Cash book (iii) Book of accounts used to record rare transactions |D: Nominal ledger (iv) Books of original entry used to record credit |E: Petty cash book purchases F: Sales ledger (v) Books used for making small payments G: Debtors control] ledger H: Journal proper I: Aledger 3 ils.SECTION B (40 marks) ‘Answer all questions from this section Briefly explain the following terms (i) Capital expenditure (ii) Bank Reconciliation statement (ii) Bad debts (iv) Bank over draft (v) Provision for depreciation Briefly explain why sometimes a cash book (Bank column) balance may differ vith the Bank statement balance (Give out 5 points) Identify the account in which entries should be made to record each of the following transactions Transactions DR CR (i) Bought stock on credit from Tino (ii) Sold goods on credit to Utamwa (iii) Bought a motor vehicle in cash (iv) Paid for electricity by cheque (v)_ Return goods to a supplier Juma lances extracted from the Trial Balance at the year ended The following table contains by 31* December 2007 2008 2009 2010 | Zs Zs TZs Tzs Bad debts 2300 2860 1920 1270 Provision for doubtful debts 1200 1440 1680 940 m 190 340 600 Bad debts recovered The provision for doubtfull debts stood at TZS 425 at 31st You are required to prepare: (i) Bad debts A/C (ii) Provision for doubtfull debts A/C (ili) Bad debts recovered A/C SECTION C (40 marks) Answer two (2) questions from this section ses in the ratio of 60% and 40% 1" December 2018 t December 2006 Zena and Zera are partners sharing profits and los ances were taken from their books on 3 respectively. The following bal ws Current Accounts: . 40,000 CR . 40,000 DR 100,000 70,000Capital Account. POND. coe 208 seven . 400,000 Zorn. 600,000 Tha Net Profit during the year amountod to 398,000. The partnership agreement provided the following: (a) (b) (c) @) 5% interest to be allowed on theed capital 10% Interest to be charged on drawings Zena who is in charge of a day to day running activities is to be allowed a commission equal to 10% of net profit They agreed to donate TZ 20,000 to the Saidia Wazee Centre You are required to prepare: () (ii) cu) (0) Zena and Zera profit and Loss appropriation account for the year ending 3st December 2018 Zena and Zera Current Accounts Zena and Zera Capital Accounts ‘A vader known as Bashirl does not keep proper books of account. However, he provided the following particulars 3LU2/2010 AUN22011 SHS Cash at Bank 30,000 Cash In hand. 40,000 Stock in trade. 450,000 Debtors 200,000 Criditors. 200,000 Equipments. $0,000 Furniture. 40,000 Additional information (@) (b) © During the year 2011, Bashiri Introduced 60,000/= as additional capital and withdrew 40,000/= Write off depreciation on furniture at 10% and on equipment at 5% You are required to prepare statements of affairs at the end of years 2010 and 2011 as well as statement of profits or losses for the year ending 31* December 2011 Summary of receipts and payments of Songambele society for the year ended 31" December 2002 are as follows:- Opening cash balance In hand. 80,000 ‘Subscriptions. $00,000 Donations.. 150,000 Interest on investments @ 9% per annum. 90,000 Payments for medicine supply. 300,000 Honorarlum to Doctors. 100,000 280,000 10,000 150,000 15,000 Charity shows collections.. 125,000 2.ADDITIONAL INFORMATION 1/1/2002 31/12/2002 SHS SHS Subscription due ....... 15,000 22,000 Subscription received in advance. 12,000 7,000 Stock of medicine... 100,000 150,000 ‘Amount due for mediane sup. 90,000 130,000, Value of equipment... 210,000 300,000 Value of building... 500,000 480,000 You are required to prepare receipts and payments account as well as subscription ac- count for the year ended 31st December 2002 (a) (>) Ramson of Morogoro Tanzania consigned goods costing Tshs 70,000 to his agent Mahega of Narob Keny, he pai the folowing expenses Marine insurance... Tshs 3,000 Carriage cost to Nairobi.. Tshs 5,600 Port charge. .. Tshs 1,800 ‘An accounting sales received from Mahega involve the following facts:- () Only half of the goods sold for Tshs 295,000/= (i) Selling expenses were amounted to Tshs 1400/= (il) The following expenses were incured Land charge. Carriage charge....nencmeenn Postage and other expenses... (iv) Commission of 10% and Del - credere commission of 2% was taken by Mahega from gross proceeds Required ‘Show the above transactions how will be recorded by Ramson in his ledgers and account sale B. Mcopoka's cash book showed a debit balance of Tsh 39,300.40 in the bank column. The Bank statement on 30th June 2018 showed a credit balance of Ths 68,900.55 ‘On comparing the cash book with the bank statement, the following differences were found:- (i) Cheque Tsh 7,600.45 had been paid into bank on 30th June 2018, but were not credited by the:bank until Ist July 2018. (7) Cheque TSHS 28,400.35 had been drawn but not yet presented for payment (iii) Bank charge TSHS 500.50 appeared on the bank statement only. (iv) A standing order TSH 500.00 to insurance company payable on 24th June had been paid by the bank but not entered in the cash book (v)_ Dividends TSH 9800.75 collected and credited by the bank did nat appear in the cash book > ¢ \ Required Prepare Bank Reconciliation statement as at 30° June 2018, without adjusting cash book. Starting with balance as per cash book, 3 . ag ®