a Candidate’s Examination Number PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT KIBAHA DISTRICT COUNCIL FORM TWO MOCK EXAMINATION MAY, 2019 BOOK - KEEPING CODE: 062 TIME: 2:30 HOURS MONDAY, 27!" MAY, 2019 PM INSTRUCTIONS This paper consists of section A, B and C with a total of seven (7) questions Answer ail questions All answers must be in blue ided Write your answers in the space p Cellular phones and calculators are not allowed in the examination roo Write your examination number/name at the top of every page. [ FOR EXAMINER'S USE ONLY | [QUESTION NUMBER SCORE | EXAMINER'S INITIALS Fora [ENTERER'S INITIAL CHECKER’ INITIAL Page 1 of 7Candidate’s Examination Number SECTION A (20 marks) 1. For each of the item (i) ~ (x). choase the correct answer from among the given alternatives and write its letter in the space provided i) Main group of accounts are A. Income and expenditure Debtors, Creditors, real and nominal U B C. Personal, creditors and real D. Personal and impersonal ti) A book of original entry used to record goods returned to a supplier is called? A. Sales return journal B. Journal proper C. Purchases return journal D. Purchases Journal iii) The periodic imprest of a business is Tshs 3000. If Tshs 1450 is spent on petty cash items for that period, what amount will be reimbursed? A. Tshs 1450 B. Tshs 550 C. Tshs 2,000 D. Tshs 3,450 iv) The document used for making cash payments is known as; A. Receipt B. An invoice C. Payment voucher D. Cheque v} What is meant by Book-keeping A. An art of recording cash transactions B. An art of recording financial business transactions C. An art of recording bank transactions D. An art of recording cheque transactions vi) An accounting concept which assumes @ business continues to exist for the foreseeable future is called; A. Historical cost B. Matching €. Business entity D. Going concern vii) The transfer of goods or services from person to another is called A. Ledger balance 8. Cash transactions C. Transactions D. Credit transactions vii} Which among the following is not @ balance sheet item; A. Closing inventory/stock B. Premises C. Opening inventory/stock D. Liabilities ix} Which of the following is not among purpose of preparing a trial balance? A. To determine profit or loss 8. To provide a base for preparing financial statements C. To check on arithmetical accuracy of double entry system D. To detect accounting errors U Lael [Basel] BH Page 2 of 7Candidate’s Examination Number _. x) The payment of a cheque to Mussa for Tshs 2000. The right double entry for this transaction is A. Debit bank Tshs 2000, Credit Mussa Tshs 2000 Debit cheque Tshs 2000, Credit Mussa Tshs 2000 8 C. Debit cheque Tshs 2000, Credit bank Tshs 2000 D. Debit Mussa Tshs 2000, Credit bank Tshs 2000 2. Match each item in List A with correct response in List B by writing its letter below the number of the corresponding item in the table provided (ust i) A person to whom the business owe f Liability g00ds supplied on credit Purchases |i) The main book of accounts creditor | iii) The business Financial obligations Debtor iv) Value of goods returned by the Return outward customers Capital | v} Value of goods returned by the business G. Assets to the supplier. H. Voucher vi) Value of goods bought for resale 1, Return inwards vii) A deal that involves two or more 4. Transactions | parties kK. Ledger | viii) Items of value that belong to the L. Drawings business | ix) Resources invested by the business x) A person who owe the business Answers [usta | lusts” SECTION B (20 marks) Answer all questions in this sec 3. (a) List down five main source of government revenue i) ii) iii) iv) vy = (b) Classify each of the following government expenditures into either “Capital” or “Revenue” EXPENDITURE TVPE OF EXPNDITURE Petrol cost fer government vehicles Constructions of classrooms : il Purchase of office stationeries Purchase of national alr planes Construction of road from Dar es Salaries of government officers. Page 3017Candidate’s Examination Number __ 4. Determine the missing figures in the following table SECTION C (60 marks) Answer all questions in this section 5. The following trial balance was extracted from the books of 8. Frank on 30 April 2017. From it, and the note about stock, prepare an income statement for the year ended 30 April 2017 —pETANLS beets (7sn) eneD IT (75H) [Stock 1 may 2016 ‘Carriage onward counts _ [Carriage inward Furniture Debtors and creditors Casha [Drawings [Capital Page 4 of 76. The following entries appeared in the bank column of Samwel’s cash book CASH BOOK (BANK COLUMN ONLY) cR _ | AMouNT AMOUNT | | T2000 i Balance c/d Page $ of 7Candidate’s Examination Number Additional information: i) Balance.as per bank statement ‘CR’ as on 31% December 2000 was 13,605 shillings ii) Deposit in transit: Kisa 9,720 shillings iii) Unpaid cheques Jimmy 900 shillings Martha 6,500 shillings Meruna 520 shillings iv) Bank charges for the month 500 shillings v) Standing order 2,000 shillings You are required to prepare adjusted cash book and bank reconciliation statement as at 31" December 2000 You have extracted a trial balance and drawn up accounts for the year ended 31° December 2007. There was a shortage of Tshs 78 on the credit side of the trial balance, a suspence account being opened for that amount During 2008 the following errors made in 2007 were found i) Tshs 625 receiving from Amina has been entered in Amon’s account. Page 6 of 7Candidate's Examination Number ii) Purchase day book had been overcast by Tshs 510 Hii)A purchase of machinery Tshs 640 had been included in the purchases figure iv] Bank charges Tshs 522 entered in the cash book had not been posted to the bank charges account v) A sale of goods to Faith Tshs 730 was correctly entered in the sales book but entered in the personal account as Tshs 820, Required (2) Show journal entries to correct above errors (ignore narration) (b) Write up the suspense account showing the correction of errors ANSWERS a) Page 7 of 7