THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION 062 BOOK KEEPING (For Both School and Private Candidates) Time: 3 Hours Friday, 03 rd November 2017 p.m. Instructions 1. This paper consists of sections A, B and C with a total of seven (7) questions. 2. Answer all questions. 3. Calculators, cellular phones and any unauthorised materials are not allowed in the examination room. 4. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 Marks) Answer all questions in this section. 1. For each of the items (i) - (x), choose the correct answer from among the given alternatives and write its letter beside the item number in the answer booklet provided. (i) 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. (ii) Sales invoices are first entered in the A cash book B purchases journal C sales account D sales journal E purchases account. (iii) 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. (iv) 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 (v) Which of the following is treated as current assets in the preparation of statement of financial position? A Unearned revenue B Accrued expenses C Accrued revenue D Depreciation expenses E Accumulated depreciation (vi) In the trial balance the balance on the provision for depreciation account is A not shown, as it is part of depreciation. B shown as a debit items. C shown as a credit items. D shown in both sides of the trial balance. E sometimes shown as a credit, sometimes as a debit.

(vii) 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. (viii) At the beginning of accounting year Y. club has Tsh. 14,000 as non-current assets, Tsh. 5,000 as current assets and Tsh. 5,000 liabilities. What would be its opening accumulated fund? A Tsh. 4,000. B Tsh. 14,000. C Tsh. 5,000. D Tsh. 24,000. E Tsh. 12,000. (ix) A cheque which is not accepted for payment by the bank due to insufficient fund in the drawer’s bank account is referred to as A dishonoured cheque B unpresented cheque C uncredited cheque D unrecorded cheque E open cheque (x) What is the effect of Tsh. 50,000 being added to purchases instead of being added to a non-current asset? A Net profit would be understated B Net profit would be overstated C Net profit would not be affected D Gross profit would be effected E Both gross and net profits would be understated

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 the answer booklet provided. Column A Column B (i) The net worth of the business to the owner of the business. A B Floating capital Capital expenditure (ii) The property purchased in order to be retained in the business. C Current assets (iii) The assets which can be converted into cash within a relatively short period. D E Working capital Fixed assets (iv) The sum of all current assets. F Current liabilities (v) The difference between total current assets and stock. G H Working capital ratio Capital (vi) The current assets less stock over current liabilities. (vii) The total value of assets less total debtors. (viii) The amount of money used for the day to day running of the business I J K L Liquid capital Liquid capital ratio Capital owned Capital employed (ix) Total current assets over total current liabilities. M Capital receipts (x) The debts which must be paid promptly preferably within one year. N O Long-term liabilities Profit percentage on capital invested 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) From the following given information, find out the amount to be transferred to Profit or Loss Account by using Rent received Account. 1 st Jan. 2015 Sh. 31 st Dec. 2015 Sh. Rent received outstanding 420,000 320,000 Rent received in advance 550,000 120,000 A total sh. 9,870,000 cash was received during the year. (b) Briefly explain five benefits of bank reconciliation statement.

SECTION C (60 Marks) Answer all questions in this section. 5. On 1 st January, 2015, F. Wood had the following assets and liabilities: Cash at bank Stock Debtors: W. Kamau R. Nundu Creditors: J. Polo S. Matoke Office equipment Motor van Sh. 1,400,000 4,000,000 1,500,000 960,000 1,300,000 850,000 420,000 3,200,000 His transaction during the month of January were as follows: January 2 Withdrew sh. 200,000 from bank for office use 2 Purchased goods from J. Polo sh. 250,000 on credit 4 Bought office stationery sh. 36,000 in cash 7 Received cheque sh. 940,000 from R. Nundu in full settlement less sh. 20,000 cash discount 12 Sold goods to W. Kamau sh. 1,400,000 on credit 14 Paid salaries sh. 80,000 in cash 15 Paid S. Matoke sh. 600,000 by cheque on account 16 Returned goods worth sh. 30,000 to J. Polo and received a credit note 20 Bought office equipment sh. 145,000 on credit from Patel Brothers 23 Sold all goods on hand receiving sh. 1,250,000 cash and sh. 5,000,000 by cheque 27 Paid Patel Brothers sh. 130,000 in cash 28 Withdrew sh. 370,000 from the bank for personal use 29 Paid rent sh. 160,000 in cash and salaries sh. 180,000 by cheque From the above information: (a) Find out capital as 1 st January, 2015 by using journal proper. (b) Open debtors and creditors accounts. (c) Prepare cash and bank accounts.

6. The following details relates to Chituhuma Charitable Club: 01.01.2015 31.12.2015 Sh. Sh. Premises 450,000 360,000 Club furniture 67,500 60,750 Sports equipment 45,000 57,600 Barman’s outstanding wages 2,700 3,375 Subscriptions outstanding 4,050 3,150 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 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 Account for the year ending 31 st December, 2015 Details Amount Details Amount Cash in hand b/f 15,300 Bank balance b/f 22,560 Subscriptions 225,000 Stationery and printing 77,625 Bar and restaurant receipts 177,300 Electricity 10,395 Bank balance c/f 24,030 Wages 105,660 Insurance 18,000 Sports equipment 27,000 Repair to sports equipment 33,750 Telephone and postage 7,470 Refreshment 90,000 General expenses 15,750 Advertising 8,820 Cash in hand c/f 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 1 st January, 2015 (ii) Bar Trading account for year ending 31 st December, 2015 (iii) Income and Expenditure account for year ending 31 st December, 2015. _____ _____

7. (a) Sinahamu Tena traders bought a motor van on 1 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. (b) From the following particulars extracted from the books of a trader, prepare sales ledger and purchases ledger control accounts for the month ended 31 st December, 2015. Balance on 1 st January, 2015: Sh. Sales ledger - cash 356,000 - credit 78,000 Purchases ledger - cash 424,440 - credit 86,000 Transactions during the year: Sales on credit 9,548,000 Purchases on credit 8,472,000 Return inwards 245,000 Returns outwards 349,000 Cheques received from customers 7,242,000 Cheques paid to suppliers 6,940,000 Cash paid to suppliers 94,000 Cash received from customers 104,000 Bad debts written-off 8,000 Discount allowed to customers 69,000 Discount received from suppliers 76,000 Credit purchases set off against credit sales 254,000 Balance on 31 st December, 2015: Sales ledger - credit balance 89,000 Purchases ledger - debit balance 92,000