CATHOLIC ARCHIODIOCESE OF ARUSHA

ST. THERESA OF THE CHILD JESUS SECONDARY SCHOOL

FORM III HOLIDAY PACKAGE (12ndmay 2020)
BOOK KEEPING

INSTRUCTION
Answer all questions

1. Match the items in list A with the responses in list B by writing the letter of the correct
response in the space provided:

LIST A LIST B
(1) A book of prime entry used to record all A. sales returns journal
goods bought on credit
(2) A book of account where total returns B. Purchases ledger
outward is to be posted.
(3) A book of prime entry used to record all C. Sales Journal
transactions which cannot be recorded in any
other books of prime entry

(4) A book of prime entry used to record D. Purchases Journal

returns outward from goods bought on credit

(5) A book of account where the total credit E .Credit note

purchases is posted
(6) The part of a book of prime entry used to F. Journal Proper
record many small payments and high
frequency made on cash
(7) A book of prime entry used to record G. Purchases returns Journal
returns inward for goods sold on credit
(8) A book of prime entry which is used to H. Sales Ledger
record all receipts and payments made on the
sport.
(9) A book of prime entry used to record all I. Petty Cash book
goods sold on credit.
(10) A document which provides information J. Cash book
necessary for recording transactions in returns
outwards book.
K. Purchases invoice
2. Write the meaning of the following terms:
(i) Errors of commission
(ii) Business entity concept
(iii) Contra entry
(iv) Purchases control account
(v) Prepaid expenses
(vi) Accrued income
(vii) Capital expenditure
(viii) Reducing balance method
(ix) Bad debts
(x) Prime cost
3. A rent is payable of shs 60,000/= per annum. Rates of shs 40,000/= p.a are payable by
installment. The following information was available for the year ended 31st Dec. 2017:
At Jan.2017 rent had been prepaid shs 10,000/= where rates were owed shs 4,000/=
During the year 2017 the following sums were paid: Rent shs 45,000/- and the Rates shs
5,000/= At Dec 2017 rent was owed shs 5,000/= and the Rates had been prepaid shs 6,000/=
REQUIRED:
(i) Rent and Rates account
(ii) Income Statement and Statement of Financial Position for the year ended
31st Dec 2017

4. On July 1, 2001 a Machinery was bought for Tshs. 90,000.00. Another Machinery was bought
for Tshs. 48,000.00 on September 30, 2002.
On March 1, 2003 a first Machinery was sold for Tshs. 52,000.00. Depreciation is provided at
10% per annum on straight line based on assets in existence at the end of the year.
Required:-
a) Machinery Account
b) Provision for depreciation Account
c) Machinery Disposal Account
5. A company with his financial year end on 31st December bought two machines on 1st
January, 2002, No 1 for sh. 800,000 and No 2 for sh. 500,000. It also buys another machine,
No 3, on July 2004 for sh. 900,000 and another, No 4 , on 1st October, 2004 for sh. 720,000.
The first two machines are sold, No 1 for sh. 229,000 on 30th September, 2005, and No 2 for
scrap for sh. 5,000 on 30th June, 2006.
Depreciation is on the straight line basis, 20% per annum, ignoring scrap value in this
particular case when calculating depreciation per annum.

REQUIRED:

a) Machine account
b) Provision for depreciation account
 c) Machine disposal account
d) Income statement and Statement of Financial Position for the year ended 31 st
December, 2002, 2003,2004,2005,2006
6. The following is the Trial balance extracted from the books of Mkubwa Traders as at 31 st Dec
2009:
MKUBWA TRADERS
TRIAL BALANCE AS AT 31stDEC. 2009
ACCOUNTS DR CR
Stock 1st Jan. 2009 50,000
Premises 240,000
Bill receivable 30,000
Purchases 280,000
Salaries and wages 35,000
Sales 520,000
Fixtures and Fittings 25,000
Discount allowed 7,500
Discount received 4,500
Plant and Machinery 140,000
Rates 5,600
Advertising 10,400
Insurance 3,800
General expenses 7,200
Provision for bad debts 1,800
Sundry debtors 60,000
Bill payable 15,000
Sundry creditors 43,000
Cash in hand 2,400
Bank overdraft 18,600
Drawings 6,000
Capital 300,000
TOTAL 902,900 902,900

The following additional information is provided:

(a) Make a provision for Depreciation of plant and machinery at 10%p.a and
Fixtures and Fittings at 15% p.a
(b) Increase the provision for Bad Debts to an amount equal to 4%of sundry
debtors.
 (c) Prepaid insurance amounted to shs 500/=
(d) Rates accrued shs 400/=
(e) Closing stock was valued at shs 60,000/=
(f) During the year Mkubwa Traders took goods worth shs 2,000/= for his
personal use.
REQUIRED:
Prepare an Income Statement and Statement of Financial Position for the year ended 31st
Dec. 2009.

7. The following information relates to the Rent and Rates account in the books of XYZ Traders
on the dates shown below: 1.1.2005 31.12.2005
Rent owing 34,000 44400
Rates prepaid shs. 77400 47,000
Rent and Rates paid during the year amounted to shs. 143,000/=
REQUIRED: Prepare rent and rates account, Income Statement and Statement of
Financial Position for the year ended 31st Dec, 2005.