MSALATO GIRLS SECONDARY SCHOOL

CORONA HOME ASSIGMENT

BOOK KEEPING – ASSIGMENT 01
INSTRUCTIONS: Time: 3Hours
1. This paper consists of section A, B and C
2. Follow the instructions given in each section
3. Write your examination number on every page of your answer sheet
4. Calculators and cellular phones are not allowed in the examination room
SECTION A. (20 Marks)
Answer ALL question in this section
1. For each of the items (i) –(xv), choose the correct answer from the given
alternatives and write its letter beside the item number in your answer booklet.
(i) The historical cost concept states that all non- current assets are recorded
in the books of accounts at their ………………
A. Market value D. Account
B. Selling price E. Assets only
C. cost price
(ii) Are the books under which the transaction are entered before posting to
their respective ledgers
A. Cash books D. Petty cash books
B. Ledger books E. Balance sheet
C. Subsidiary books
(iii) Posting the transaction in Book keeping means:
A. Entering items in a cash book
B. Making the second entry of a double entry transaction
C. Making the first entry of a double entry transaction
D. Using single entry
E. Something other than the above
(iv) The cash book showed an overdraft of TZS. 1500 as cash at bank, but the
bank statement made up to the same date showed that cheques of TZS50,
TZS 100 and TZS. 125 respectively had not been presented for payments
and the chceque of TZS 400 paid into account had not been credited
The balance as per bank statement will be:
A. TZS 1375 Debit D. TZS 1625 Debit
B. TZS 1375 Credit E. TZS 1750 Debit
C. TZS 1625 Credit
(v) A fund operated by the government to take care of all forms of natural
disaster is……..
A. Consolidated fund D. Road fund
B. Civil contingent fund E. Rea fund
C. Exchequer Account
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(vi) If a trial balance totals do not agree, the difference must be entered in
A. The profit and loss account D. The capital account
B. A suspense account E. The trial balance
C. A nominal account
(vii) Given the opening capital Tzs. 1650, closing capital Tzs. 1135, drawings
Tzs. 330 then
A. Profit for the year was Tzs. 2455
B. Profit for the year was Tzs. 845
C. Loss for the year was Tzs. 845
D. Profit for the year was Tzs. 185
E. Loss for the year was Tzs. 185
(viii) An allowance for doubtful debt is created
A. When debtors become bankrupt
B. When there is a need to do so
C. When debtors cease to be in a business
D. To provide possible bad debts
E. To write off bad debts during the period
(ix) A document prepared by partners before entering in a partnership business
which reduce the possibility of partners misunderstand is known as
A. Partnership deed
B. Partners current account
C. Partners appropriation account
D. Partners capital account
E. Partners profit
(x) Which of the following is treated as current assets in the preparation of
statement of financial position?
A. Unearned revenue D. Depreciation expenses
B. Accrued expenses E. Accumulated depreciation
C. Accrued revenue
(xi) If current account is maintained then the partners share of profit must be
A. Debited to partners capital account
B. Credited to partners capital account
C. Credited to profit and Loss Appropriation account
D. Debited to partners current account
E. Credited to partners current account
(xii) The following are source documents
A. Sales credit note, cheque
B. Cheques, Invoice, purchases
C. Credit note, debit note, bank pay slips
D. Bill of exchange, Invoice, Credit note
E. Debtors, cash receipts , Journals
(xiii) 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

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 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
(xiv) 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 Tsh.
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
(xv) A person who stands on behalf of a principal to sell goods is known as...
A. Consignee D. Principal assistance
B. Consignor E. Agent
C. Partner
2. Match the items in LIST A with the responses in LIST B and write the letter of the
most correct response in the answer sheet provided
LIST A LIST B
i) A small amount of money is issued by an A. Accounting officer
accounting officer, an officer or warrant B. Accrual basis
holder so as to enable him to meet C. Ambit of vote
incidental petty expenditure D. Cash basis
ii) An officer appointed in writing by the E. Child
treasury and charge with the duty of F. Controlled and auditor
collecting and accounting for specified general
public money G. Consolidated fund
iii) A person/any other appointed in writing H. Development expenditure
by treasury and charged with duty of I. Exchequer
accounting for funds that have been J. Family
appropriated by the national assembly K. Financial year
iv) An officer and his spouse together with L. Imprest
children if any M. Paymaster General
v) Any person irrespective of age who is N. Petty cash
unable to live independently O. Received of revenue
P. Public Money

SECTION B. (40 MARKS)

Answer ALL questions
3. Nonprofit making organization are enterprises that are established not for the
purpose of making profits but for promoting social activity or providing goods
and services for members at minimal cost or free of charge. As an accountant
distinguish between profit and Non – profit making organization by giving five
points.
4. (a) What is meant by capital expenditure and revenue expenditure
(b) Some of the following items should be treated as capital and some as
revenueexpenditure. For each of them state which clarification applies
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 (i). The purchase of machinery for use in the business
(ii). Carriage paid to bring the machinery in (i) above to the works
(iii). Complete redecoration of the premises at a cost of Tzs 1500
(iv). A quarterly account for heating
(v). The purchase of a soft drinks vending machine for the canteen with a stock
of soft drinks
(vi). Wages paid by a building contractor to his own workmen for the erection of
an office in the builders stockyard
5. On 1 of January 2000 Masatula commenced a new business. During the year
st

ended 31st December 2000 the following debtors were found to be bad and were
written off:-
10th March 2000 Shelukindo 88,000
30th May 2000 Shemaombe 51,200
31st August 2000 Shekidele 9,600
On 31st December 2000, schedule of debtors amounted to shs.5, 480,000 and
after an examination it was decided to make a provision for doubtful debts of shs.
176,000.
Prepare;
(a) Bad debts account
(b) Provision for bad debts account
(c) Balance sheet extracts as at 31st December 2000
6. Three of the accounts in the ledgers of charlotte Williams indicated the following
balances at 1st January 2017
Insurance paid in advance Tsh. 562,000
Wages outstanding Tsh. 306,000
Rent receivable, received in advance Tsh. 36,000
During 2017 charlotte
Paid for insurance Tsh 1,019,000 by bank standing order
Paid Tsh. 15,000,000 wages in cash
Received Tsh. 2,600,000 rent by cheque, from the tenant.
At 31st December 2017 insurance prepaid was Tsh 345,000. On the same
day rent receivable in arrears was Tsh. 105,000 and wages accrued
amounted to Tsh. 419,000.
Prepare the insurance, wages and rent receivable accounts for the year ended 31 st
December 2017, showing the year transfers and the balances brought down.

SECTION C. (40 MARKS)

Attempt only two (2) questions from this section
7. On 5th March 2014, A Mwakyusa of Kyela consigned 1000 units of goods to C.
Omary of Zanzibar, the cost price of which was 800,000/= AMwakyusa paid the
following expenses
Carriage shs 200,000
Marine insurance Shs. 80,000
Freight Shs. 90,000

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 On 30thJune 2014 C. Omary sent an account sales to A. Mwakyusa showing that
600 Units were sold for shs.1, 200,000 and he incurred the following expenses;
Carriage shs. 150,000
Import duty shs. 45,000
Storage Shs. 50,000
Commission Shs. 80,000
Sales expenses shs. 5000
Required. Record the above transactions in the books of the consignor, showing
clearly the computations of unsold stock.

8. The following is the summary of Ellies bank account for the year ended 31 st Dec.
2016.
BANK ACCOUNT
DR CR
Balance 01.01.2016 shs. 8,200 Payment to creditors 136,200
Receipts from debtors 182,000 Rent 7,800
Balance 31.12.2016 12,800 Insurance 2,940
Sundry expenses 1,260
Drawings 54,800
203,000 203,000

All of the business takings have been paid into the bank with the exception of shs.
34,900 out of this Ellies has paid wages of shs. 22,800, drawings of shs. 2800 and
purchases of shs. 9300.
The following additional information is available:
31.12.2015 31.12.2016
Shs. Shs.
Inventory 20,600 23,000
Accounts payable 23,400 26,200
Accounts receivable 40,60037,700
Insurance prepaid 910 1,020
Fixtures at valuation 3,700 3,400
Rent owing 570 -
Required:
(i) Prepare aincome statement for the year ending 31st December 2016
(ii) Display a statement of financial position as at that date

9. (a) Prepare a Receipt and Payment Account for the Makumira social club for the
year 2013.
(i) Membership fee received during the year Tsh. 880,000
(ii) Salaries paid to Employees of the club Tsh.620.000
(iii) Travelling expenses during the year Tsh.680,000
(iv) Total Subscription received during the year from members was Tsh.
1,200,000
(v) A donation Tsh.3100 was received from Nearby Mosque.
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 (vi) The club organized several social gathering for which it had got collections
of Tsh. 950,000 and spent Tsh.320,000 on refreshments
(vii) The club spent Tsh. 120,000 for stationery
(viii) The club sold some of the old tables at Tsh. 3,000,000
(b) Kurwa and Doto enter into a joint venture to share profits or losses equally
resulting from dealing in Motor spares. Both parties take an active role in the
business, each recording his own transactions. They have joint banking account
or separate set of books.
2009. August 1st Kurwa bought four sets of spares for Tsh. 210,000
3rdKurwa paid for office repairs Tsh. 94,000
4thDoto paid office rent Tsh. 40,000 and Adverting expenses Tsh.10, 000
6thDoto paid for packing materials Tsh. 4,400
7thDoto bought new set of spares for Tsh. 70,000
31stKurwa sold five old spares to various customers totaling Tsh. 410,000
Required: Show the relevant Accounts in the books of both jointventrures

THE END