🌊PAPER 20-Qns

MARKAZ ISLAMIC SEMINARY

FORM THREE MID-TERM TEST

062-BOOK-KEEPING

April, 2024-Time: 3:00 Hours

INSTRUCTIONS

1. This paper consists of sections A, B and C with a total of nine (9)questions.

2. Answer all questions.

3. Section A carries fifteen (15) marks, Section B carries forty(40) Marks and Section C carries forty five (45) marks

4. Non programmable calculators may be used.

5. All answers should be written in the answer sheet provided.

6. Write your name on every page of your answer sheet.

SECTION A (15 Marks)

Answer all questions in this section

1. For each of the items (i)-(ix) choose the correct answer from among the given alternatives and write its letter besides the item number in the answer booklets provided.

1. Mr Zugo wants to start a business, but before commencement he needs to learn bookkeeping. One of the following is not objective for the study of book keeping

   1. Recording all the incomes and expenses without comparing them

   2. Providing details about the financial affairs of an organization

   3. Recording all the assets, liabilities and capital at a certain date

   4. Knowledge of credit dealings

   5. Controlling of assets, liabilities, income and making their records available in the books of accounts

2. Chengula was appointed in writing by the Accounting Officer and charged with a duty of controlling and accounting for government expenditure. Identify the name of the job performed by Chengula as it used in the government accounting

   1. Authorized officer

   2. Paymaster General

   3. Warrant Holder

D.Receiver of revenue

E. Sub-accounting officer

(iii)Mwajuma bought goods on credit from Mwanaidi stores for Tzs. 1,900,0000/=. The supplier offered her a trade discount of 2%. What would be the amount to be paid by Mwajuma?

1. 1,938,000

2. 1,862,000

3. 1,900,000

D.38,000

E. 1,982,000

4. If the liabilities of a business increased 75,000 during a period of time and the equity in the business decreased 30,000 during the same period, the assets of the business must have:

   1. Decreased 105,000

   2. Decreased 45,000

   3. Increased 30,000

   4. Increased 45,000

   5. None of them

4. If beginning capital was 25,000, ending capital is 37,000, and the owner's withdrawals were 23,000, the amount of net income or net loss for the period was:

   1. Net loss of 35,000

   2. Net income of 35,000

   3. Net income of 14,000

   4. Net loss of 14,000

   5. Net loss of 1000

4. The process of transferring the debits and credits from the General Journal to the appropriate Ledger Accounts is called:

   1. Posting

   2. Journal proper

   3. Accounting

   4. Transaction

   5. Journalizing

4. Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments?

   1. Monetary unit assumption

   2. Economic entity assumption

   3. Time period assumption

   4. Going concern assumption

   5. Entity concern assumption

4. An asset created by prepayment of an expense is:

1. Recorded as a debit to a prepaid expense

2. Recorded as a debit to an unearned revenue account

3. Recorded as a credit to an unearned revenue account

4. Recorded as a credit to a prepaid expense account

5. Recorded as a debit and credit to an unearned revenue

4. A firm purchased goods worth 1,400 from a supplier with a trade discount of 25%. The entries to record this transaction would be:

Dr Cr

A. Purchases 1,400	Trade discounts 1,400
B. Purchase 1,400	Accounts payable 1,400
C. Purchase 1,050	Trade discounts 1,050
D.Purchase 1,050	Accounts payable.1,050
E. Trade discount 1,050	Supplier 1,400

4. A company paid off 30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equations?

1. Assets, 30,000 increase; liabilities, no effect; equity, 30,000 increase

2. Assets, 30,000 decrease; liabilities, 30,000 decrease; equity, no effect

3. Assets, 30,000 decrease; liabilities, 30,000 increase; equity, no effect.

D.Assets, no effect; liabilities, 30,000 decrease; equity, 30,000 increase

E. Assets, no effect; liabilities, 30,000 increase; equity, 30,000 decrease

2. Match the item in list A with responses in list B by writing the letter of the correct beside the item number

LIST A	LIST B
A ledger for customer’s personal account Books used for making small payments (iii)Ledger for supplier's personal account Ledger for capital and drawings A person who owes money to a business for goods or services supplied	Petty cash Current liabilities Creditor Purchases ledger Private ledger Cash book Debtor Sales ledger

SECTION B (40 MARKS)

Answer all questions in this section

3. You have been appointed as Receiver of revenues by the Payment General to take the responsibility of collecting revenues on behalf of the government from all sources falling under his area of authority. As a Receiver of revenues explain five (5) methods used by the government to collect revenues within your area.

4. As an expert of accounting in Mkombozi Company limited you have been assigned to explain to the members of this company about the errors which do not affect the agreement of Trial balance by providing them five(5) points.
5. Financial information is very important in any business where co-parties of the business might need it. Give out any five (5) five parties that might find financial information useful.

6. Jumbe keeps a petty cash book with an import being TZS 250000. For the month of April 2019 his petty cash transaction were as follows:

1^st April Petty cash balance TZS 11300

2^nd April Petty cashier presented vouchers to the cashier and obtained cash to restore the imprest TZS 238700

4^th April Bought postage stamps TZS 85000. 7^th April Bought stationery TZS 12,300

9^th April Paid to Asim, a creditor TZS 23500.

11^th April Paid bus fares TZS 17200

17^th April Bought office files TZS 7000

23^rd April Paid for transportation TZS 68000

26^th April Bought petrol TZS 10000

Enter the above transactions in the petty cash book using columns for Postage, Stationary, Ledger and Travelling. Balance the petty cash book on 30^th April, bringing down the balance on 1^st May and restore the imprest amount.

SECTION C (45 MARKS)

Answer all Questions

7. Aboud Transport Company with the financial year ending on 31st

December bought two motor vans on 1st January 2011, No 1 for TZS 18,000,000 and No 2 for TZS 15,000,000 1st October, 2011. It also bought another van, No. 3 on 1st July 2012, for TZS 19,000,000. It is a company’s policy to charge depreciation at 10% per annum using a straight line method for each month of ownership basis. Required: Prepare for the year ended 31st December, 2011, 2012 and

2013

1. Motor van account

2. Accumulated Provision for depreciation account

8. The DSM Rotary club, has provided you with the following information: -

As of 31st December 2020. 2021

Rent in arrears. 6400. 8800

Rent in advance. 1200. -

Rent received during the year 20,200

Insurance expenses owing. 3700. 2700

Insurance expenses prepaid. - 5200

Insurance paid during the year 16,800

You are required to prepare a rent account and insurance account and show the amounts to be transferred to the Income statement.

9.On 31st December 2017, the cash book balance of Shedrack Traders was

TZS 25,370/= where the bank statement showed a credit balance of TZS 25, 670/=. In comparing these two balances, the following were discovered;

Cheques not yet presented for payment TZS 12,340/=

Cheques paid into the bank but not yet credited by the bank account TZS 12,160/=

Items shown in the bank statement but not yet entered in the cash book were as follows:

Bank charges TZS 240/=

Standing order TZS 460/= Dividends collected by the bank TZS 820/=

Required:

1. Bring the cash book to date to show the correct cash book balance.

2. Prepare a bank reconciliation statement starting with the adjusted cash book balance.

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