Candidate's Examination Number ………………… THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL FORM TWO SECONDARY EDUCATION EXAMINATIONS 0062 BOOK KEEPING Time: 2 Hours Monday 01 st December 2014 a.m. Instructions 1. This paper consists of sections A, B and C. 2. Answer all questions. 3. All writing must be in blue or black ink. 4. All answers must be written in the spaces provided. 5. All communication devices and calculators are not allowed in the examination room. 6. Write your Examination Number at the top right corner of every page. FOR EXAMINER'S USE ONLY QUESTION NUMBER SCORE EXAMINERS’ INITIALS 1 2 3 4 5 6 7 TOTAL

Candidate's Examination Number ………………… SECTION A (20 Marks) Answer all questions in this section 1. For each of the items (i) - (x), choose the correct answer and write its letter in the box provided. (i) Which of the following statements is incorrect? A Assets – Capital = Liabilities. B Liabilities + Capital = Assets. C Liabilities + Assets = Capital. D Assets – Liabilities = Capital. (ii) Which of the following is a liability? A Machinery B Motor vehicles C Account payable for goods D Cash at bank (iii) Which of the following best describes the meaning of sales? A Goods bought for cash. B Goods bought on credit. C Goods bought for resale. D Goods paid for cash and credit. (iv) What is meant by book keeping? A An art of recording business transactions. B An art of recording cash transaction. C An art of recording bank transactions. D An art of recording cash and credit transaction. (v) Which of the following is correct? A Profit does not change capital. B Profit reduces capital. C Capital can only come from profit. D Profit increases capital. (vi) In government accounting a term family include an officer’s A wife and children B father, wife and children C and all relatives D mother, father, wife and children E mother, wife and children (vii) Net profit is calculated in the A trading account B trial balance C balance sheet D profit and loss account (viii) The gross profit can be described as A excess of sales over cost of goods sold B sales less purchases

Candidate's Examination Number ………………… C cost of goods sold plus opening stock D net profit less expenses of the period (ix) The sales day book can be described as A part of the double entry system B a list of credit sales C a list of supplier accounts D part of real accounts (x) A debit balance of sh. 25,000 in a cash account shows that A there was sh. 25,0000 cash in hand B cash has been overspent by sh. 25,000 C sh. 25,000 was the total of cash paid out D the total of cash received was less than 25,000 2. Match the items is Column A with the responses in Column B by writing the letter of the correct response below the item number in the table provided. Column A Column B (i) The amount of resources invested in the business by the owner. (ii) The property belonging to the business. (iii) The property acquired or created and held permanently by the business. (iv) The property than one can touch and see. (v) A statement of the financial position of an enterprise as at a given date. (vi) The property belonging to a business which is of a temporary nature. (vii) Activities involving transfer of money or goods from one person to another. (viii) A schedule of balances, both credit and debit, extracted from the accounts in the ledger. (ix) The claims for which must be paid in full, within a short period. (x) The business owner reduces the business resources for personal use. A Tangible assets B Bank balance C Current assets D Revenue receipts E Fixed assets F Current liabilities G Business H Capital I Cash balance J Trial balance K Credit purchases L Assets M Drawings N Transactions O Balance sheet ANSWERS Column A (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Column B

Candidate's Examination Number ………………… SECTION B (20 Marks) Answer all questions in this section 3. (a) Mention three classes of accounts. (i) (ii) (iii) (b) Name two sides of account. (i) (ii) 4. Identify the accounts affected by the following transaction and show action to take in recording the accounts in the double entry system. Transaction Account to be credited Account to be debited (i) Owner put cash into business. (ii) Bought goods for cash. (iii) Sold goods for cash. (iv) Received cash for rent. (v) Owner withdraws cash from business for personal use.

Candidate's Examination Number ………………… SECTION C (60 Marks) Answer all question in this section 5. The following balances were extracted from the books of Mkubwa Nawenawe. Cash in hand 134,000 Cash at bank 307,500 Stock at the beginning 600,000 Furniture and fittings 915,000 Machinery 1,000,000 Debtors: Mapipa 25,000 Mbala 200,000 Majanga 35,000 Purchases 220,000 Wages 48,000 Rent 80,000 Electricity 6,000 Sundry Expenses 14,000 Discount allowed 2,500 Creditors: Joti 7,000 Mpoki 45,000 Sunche 120,000 Sales 945,000 Discount received 20,000 Capital 2,472,500 Using the information provided, prepare a trial balance.

Candidate's Examination Number ………………… 6. Lupelo started business on 1 st January, 2014 having transferred sh. 96,000 from his private bank account to the business office. During the month of January he carried out the following transactions: 2014 January 1 Paid sh. 4,800 for rent for the month and made purchase of sh. 38,300. 2 Paid sh. 3,800 for stationery and sh. 1,920 for stamps. 4 Cash sales sh. 17,280 and purchased goods for cash sh. 60,000. 7 Paid sh. 2,880 in respect of wages to assistant. 10 Borrowed sh. 48,000 from Katondo, a friend 13 Bought a used pick-up for sh. 92,160 from Karanga against sh. 19,200 deposit. 19 Cash sales sh. 42,240. 20 Paid wages for two weeks, sh. 5,760. 21 Cash sales sh. 40,000. 22 Commission received for sh. 20,000. 23 Bought goods from Webuye Wholesalers Ltd, for sh. 62,400 on credit. 29 Drew sh. 28,800 for private use. 30 Cash sales sh. 26,880. 31 Paid another sh. 57,600 off pick-up account. Write up Lupelo’s one column cash book.

Candidate's Examination Number ………………… 7. From the following particulars extracted from the books of a trader, prepare trading account for the year ending 30 th December 2013. Transactions Sh. Sales 155,000 Sales returns 8,000 Purchases 140,000 Purchases returns 18,500 Carriage inwards 12,000 Warehouse wages 10,000 Opening stock 1 st January, 2013 55,000 Closing stock 31 st December, 2013 85,000