THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION 062 BOOKKEEPING (For Both School and Private Candidates) Time: 3 Hours Monday, 12 th November 2018 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) Which of the following should be entered in the Journal? A Payment for cash purchases B Fixtures bought for cash C Credit sales of goods D Sale of surplus machinery E Goods sold for cash (ii) Errors are corrected through the journal because A it saves the book-keeper’s time. B it saves entering them in the ledger. C it is much easier to record entries in the journal. D it shows assets in the credit side and liabilities in the debit side. E it provides a good record explaining the double entry system. (iii) If the totals of a trial balance do not agree, the difference must be entered in A the trading account. B a suspense account. C a nominal account. D the capital account. E the profit and loss account. (iv) Given the opening accounts receivable of TZS 115,000, sales TZS 480,000 and receipts from debtors TZS 450,000, the closing accounts receivable total should be A TZS 85,000 B TZS 145,000 C TZS 163,000 D TZS 185,000 E TZS 30,000 (v) In a sales ledger control account the bad debts written off should be shown as A a debit and credit items. B a debit item. C a credit item. D a balance carried forward. E a balance brought forward. (vi) Prime cost is obtained as a result of A cost of raw materials used plus direct wages and factory overhead cost. B cost of raw materials used plus direct wages. C factory overhead cost plus direct wages. D factory cost of goods manufactured less cost of raw materials used. E cost of raw materials used less factory cost of goods manufactured. (vii) X and Y are partners in a partnership business sharing profit and losses at the ratio of 1:3 respectively. Their net profit at 31/12/2017 was TZS 500,000, how much profit will each partner earn? A 166,667:333,333 respectively B 333,333:166,667 respectively C 375,000:125:000 respectively D 125,000:375,000 respectively E 250,000:250,000 respectively

(viii) If someone owns a grocery store, which of the following is a capital expenditure? A Rent B Wages C Salaries D Fire insurance E Motor van (ix) Which of the following is a liability? A Loan from J. John B Buildings C Accounts receivable D Work in progress at the end E Closing stock of finished goods (x) Which of the following is an example of recurrent expenditure? A Licence fees from the client B Salaries and allowances of staff C Office maintenance cost D Licence fees payable E Taxes payable 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) It is the main book of accounts. A General ledger (ii) It contains debtors’ accounts. B Sales journal (iii) It contains creditors’ accounts. C Purchases returns journal (iv) It contains the real and nominal accounts. D Purchases ledger (v) It contains cash and bank accounts. E Cash payments journal (vi) It contains capital and drawings accounts. F Purchases journal (vii) It is used to record credit sales. G Sales ledger (viii) It is used to record credit purchases. H General journal (ix) It is used to record the payment of small amounts of money by a business. I J Sales returns journal Ledger (x) It is used to record business transactions that are not journalised in any of the other journals. K L Journals Private ledger M Cash receipts journal N Petty cash book O Cash book

SECTION B (20 Marks) Answer all questions in this section. 3. (a) State five advantages of self-balancing ledgers and control accounts. (b) Briefly explain five benefits of using Petty Cash System. 4. (a) The following information was extracted from the books of Rhombo Traders for the year ending 31 st December, 2017. TZS Purchases 2,000,000 Stock (1 st Jan. 2017) 150,000 Stock (31 st Dec. 2017) 300,000 Sales 2,500,000 Expenses 200,000 Rent received 100,000 Warehouse wages 80,000 Carriage inwards 50,000 Using the information provided, calculate: (i) The value of goods available for sale. (ii) The gross profit for the year. (iii) The net profit for the year. (iv) Rate of stock turnover. (v) Percentage of expenses over sales. (b) show how the following transactions should be recorded in the ledger accounts by writing the name of the account to be debited and credited for each transaction: Transaction Account to be debited Account to be credited (i) Started business putting cash into a business bank account. (ii) bzought machinery on credit from Unique Machines Traders. (iii) Withdrew cash from the bank and placed it in the cash box. (iv) Bought a second hand motor van paying in cash. (v) Sold some of the machinery on credit to B. Brothers

SECTION C (60 Marks) Answer all questions in this section. 5. The trial balance extracted from the books of Maji Meupe on 31 st December, 2017 showed debit totals of TZS 491,400 and credit totals of TZS 440,400. The trading profit and loss account drawn up on the basis of this trial balance revealed a gross profit of TZS 143,000 and a net profit of TZS 36,000. A careful re-examination of his books revealed the following errors: (i) Sales day book was overcast by TZS 10,000. (ii) Goods costing TZS 8,000 had been taken by Maji Meupe for his personal use. No record was made of this fact. (iii) Cash discount amounting to TZS 6,000 allowed by a creditor was debited to discount allowed account. (iv) A payment of TZS 5,000 for carriage on sales was debited to carriage inwards account. (v) A balance of TZS 1,000 in the personal account of M. Migire, a debtor, was not included in the list of total debtors on the trial balance. (vi) During the year Maji Meupe sold his private farm for TZS 50,000 and paid in the proceeds to the firm’s bank account. This fact was only recorded in the cash book. (vii) A new warehouse was built at a total cost of TZS 50,000, including materials costing TZS 35,000 and labour TZS 15,000. Materials used were journalised through purchases book and the wages paid were debited to ordinary wages account. (viii) No record has been made for goods valued at TZS 14,000 taken by the proprietor, Maji Meupe for his personal use. (ix) Goods costing TZS 25,000 purchased from Azam had been credited to Azania’s personal account. Using the information provided, prepare: A Journal entries to correct the errors. B The corrected gross and net profit figures. C Suspense account. 6. Essau, Chuwa and Linus are in partnership sharing profits and losses in the ratio of 3:2:1 respectively. The following is a trial balance of the partnership as at 31 st December, 2017. Details Dr. TZS Cr. TZS Capital accounts: Esau 360,000 Chuwa 240,000 Linus 120,000 Current Accounts: Esau 14,000 Chuwa 10,000 Linus 6,000 Bank balance 50,000 Debtors 460,000 Bad debts provision 1 st January, 2017 20,000

Creditors 700,000 Provision for Depreciation 1 st January, 2017 Land and buildings 240,000 Motor vehicles 160,000 Drawings: Esau 80,000 Chuwa 60,000 Linus 60,000 Land and building at cost 1,20,000 Motor vehicle at cost 400,000 Office expenses 80,000 Purchases 1,700,000 Rates 80,000 Sales 3,000,000 Selling expenses 280,000 Stock on 1 st January, 2017 400,000 4,860,000 4,860,000 The following information was also provided: (i) Stock at 31 st December, 2017 TZS 600,000. (ii) Non-current assets are written off at the following rates: Land and buildings at 5% per annum on cost and Motor vehicle at 20% per annum on cost. (iii) Rates prepaid at 31 st December, 2017 TZS 40,000. (iv) Bad debts amounting to TZS 10,000 were written off and bad debts provision to be adjusted to 5% of the outstanding debtors at 31 st December, 2017 (v) At 31 st December, 2017 TZS 35,500 was outstanding in respect of selling expenses. (vi) According to the partnership agreement: Linus is to get a salary of TZS 120,000 per annum. Interest of 10% per annum is to be allowed on the partner’s capital accounts. No interest is to be allowed on partner’s current accounts and no interest is to be charged on partners drawings. Using the information provided, prepare: A Partners Trading, Profit and Loss Appropriation Accounts for the year ending 31 st December, 2017 B Partners’ Current Accounts for the year ending 31 st December, 2017 and bring down the balances at 1 st January, 2018.

7. Manyama Bwire keeps his books on a single entry system. 31.12.2016 31.12.2017 TZS TZS Club furniture 100,000 120,000 Stock 60,000 20,000 Debtors 120,000 140,000 Prepaid expenses 40,000 Creditors 40,000 ? Outstanding expenses 12,000 20,000 Cash 22,000 6,000 Receipts and payments during the year were as follows: Receipts from debtors 420,000 Payment to customers 200,000 Carriage inwards 40,000 Drawings 120,000 Sundry expenses 140,000 Furniture purchased 20,000 Other information: There was a considerable amount of cash sales. Credit purchases during the year amounted to TZS 230,000. Provide for doubtful debts to the extent of 10% on debtors. From the information provided, prepare: (a) Trading, Profit and Loss Accounts for the year ending 31 st December, 2017. (b) Total Debtors and creditors Control accounts as well as Cash account. (c) Balance sheet as on 31 st December, 2017.