NYAMAKO JOINT EXAM JUNE -2022

FORM FOUR
B/KEEPING
TIME 3:00 HRS

Instructions:
1. This paper consists of sections A, B and C with a total of 9 questions.
2. Answer all questions in section A and B and only two from section C
3. Cellular phones are not allowed in examination room
4. Write your examination number on every page of answer sheet(s) used.

SECTION A, (20 Marks)

Answer all questions

1. For each of the items (i) – (xv). Choose the correct answer from among the given alternatives and
write its letter besides the item number in the answer booklet provided.

i. Working capital is a measure of

A.
C.
consistency
profitability D.
B. liquidity
solvency .
MsomiBora.com
ii. Which accounting assumption assumes that an enterprise will continue in
operation long enough to carry out its existing objectives and commitments?
A. Monetary unit assumption B. Economic entity assumption
C. Time period assumption D. Going concern assumption

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

A. Recorded as a debit to a prepaidexpense
B. Recorded as a debit to an unearned revenueaccount
C. Recorded as a credit to an unearned revenueaccount
D. Recorded as a credit to a prepaid expenseaccount

iv. From the following categories of errors, identify the category of errors which affect only one
account
A. Casting errors B. Errors of omission
C. Error of commission D. Errors of original entry
v. In the annual report, where would a financial statement reader find out if the company’s
financial statements give a fair depiction of its financial position and operating results?
A. Notes to the financial statements
B. Management discussion and analysis section
C. Balance sheet
D. Auditor’s report
vi. 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:
A. Decreased $105,000 B. Decreased $ 45,000
C. Increased $30,000 D. Increased $45,000

vii. 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:
A. Net loss of $35,000 B. Net income of $35,000
C. Net income of $14,000 D. Net loss of $14,000
viii. The difference between the balance of a plant asset account and the related accumulated
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 depreciation account is termed as:-
A. Market value B. Contra asset
C. Book value. D. Liability.
ix. The correct order of steps in the accounting process for turning transaction data into useful
information for decision –making is;
i) Communicating iii)Recording
ii) Processing iv) Controlling
A. (ii) then (iii)
B. (i) then (ii)
C. (ii) then (i)
D. (ii), (iii) then (iv)
x. The following is a list of the assets and liabilities of a firm as at 30 Sep 2009
Equipment 9,560 Cash in hand 8,770

Inventory 7,790 Creditors 6,240

Bank loan 6,220

Total assets as at 30 September, 2009 were-
A. $17,350
B. $23,570
C. $26,120
D. $32,340
xi. 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$1,400Trade discounts$1,400
B. Purchase$1,400Accounts payable$1,400
C. Purchase$1,050 Trade discounts .$1,050
D. Purchase$1,050 Accounts payable$1,050
xii. A company paid off $30,000 of its accounts payable in cash. What would be the effects of this
transaction on the accounting equations?
A. Assets, $30,000 increase; liabilities, no effect; equity, $ 30,000 increase
B. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect
C. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect
D. Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase
xiii. The profit when expressed as a fraction or percentage of the selling price is known as
A. Net profit B. Net loss C. Margin D. Mark-up

xiv. The sale of goods on credit to Maganga should be recorded in

DEBIT CREDIT
A. Maganga’s Account Sales Account
B. Maganga Account Cash Account
C. Cash Account Sale Account
D. Sales Account Maganga’s Account

xv. The statement that shows the list of debit and credit balance extracted from the ledger is known
as:
A. Balance sheet B Trial balance
C. Statement of Affairs D. Trading account E.

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2. Match the items in LIST A with response in LIST B by writing the letter of correct response
beside the item number
LIST A
(i) A ledger for customers personal account
(ii) Books used form making small payments
(iii) The sale of fixed assets that werebought
(iv) Obligations which is to be paid within a year from a date on the balance sheet..
(v) A person who owes money to a business for goods or services supplied to him
LIST B
A. Disposal of noncurrent assets
B. Current Liabilities
C. Current Assets Petty cashbook
D. Creditors
E. Debtors
F. Sells Ledger
G. Debtors control ledger
H. Bookkeeping

SECTION B: (40 Marks)

Answer all questions

3. a) Give five distinctions between receipts and payment and income and expenditure accounts
b) highlight five importance of the balance sheet.
4. Briefly explain why sometimes a cash book (Bank Column) balance may differ with
the bank statement balance. (Give out five points)
5. Identify the account in which entries should be made to record each of the following transactions
TRANSACTIONS DR CR
i. Bought stock on credit from Morris
ii. Sold goods on credit to Nembris.
iii. Bought a Motor Vehicle in Cash.
iv. Paid for electricity by Cheque.
v. Return goods to supplier Juma.

st
6. The following transactions belong to BINTI TRADERS CO.LTD for the month ended 31
January 2019.
st
Jan 1 cash balance Tshs 140,000

2 Bank overdraft Tshs 15,000

nd

rd
3 cash purchases Tshs 10,000
th th
4 Paid cash into bank Tshs 15,000 5 cash sales to date Tshs 10,000
th th
6 Withdraw cash for office use Tshs 12,000 7 Withdraw cash for personal use Tshs 4,000.
th
8 Paid cash into bank Tshs 30,000
th
9 Cash drawing Tshs 45,000

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 th
10 Paid cheque to jamboleoTshs 10,000
th
11 Received cheque from bank Tshs 15,000

Required:
Open two column cash book and balance off.

S ECTION C: (40 MARKS)

As\nswer ONLY TWO questions from this section.

7. A container Company Ltd was formed on 1stJanuary 1998 and the following
information is available for its first four years of operation.

1998: Bought Motor car costing Tsh90,000 on 1.1.1998

and Motor car costing Tsh60,000 on 1.1.1998 2000: Bought

Motor Car costing Tsh55,000 on1.7.2000

2001: Sold motor car which was bought for

Tsh. 90,000 on 1.1.1998 for the sum of 27,500 on

th
30 September2001

Container Company Ltd depreciates its motor car at the rate of 20% per annum, straight line
method, for each month of ownership. The accounting period for containers Ltd ends in
December each year.
Required:
1. Motor Car account
2. Provision for depreciation account
3. Disposal account
4. Profit and loss account
5. Extract Balance sheet
8.The following is the Receipts and Payments account of a JAMHURI HOSPITAL for year ended
st
31 March,2018:
RECEIPTS TZS PAYMENTS TZS
5,000 150,000

30,000 Medicines 50,000

Balance b/f: Cash in Hand Honorarium to Doctors 137,500

250,000
Cash at Bank Salaries 2,500
investments 72,500
REQUIRED: Subscriptions
Sundry Expenses 75,000

Donations Equipment Purchased 5,000

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35,000
Interest for full year on Charity show expenses
50,000
2,500
 st
Prepare Income and Expenditure statement for the year ended 31 March, 2018 and the statement
of financial position as on that date.
9. The following trial balance is prepared by Chomola an incompetent book keeper as at 30th
September 2019.

DETAILS DR CR
Sales 67,000
Purchases 42,600
Lighting and Heating expenses 1,900
Rent 2,400
Wages 5,200
General Expenses 700
Carriage outward 1,100
BuildingsFixture and fittings 20,000 7,500

Creditors 9,000
Debtors 12,000
Bank 1,200
Cash 400
Drawings 9,000
Capital 31,000
Inventory (at 30 October 2018) 3,000
Inventory (at 30 September 2019) 5,000
1,591,200 59,800

You are required to

i. Assent him by correcting it.

th
ii. Prepare Trading, Profit and Loss account for the year ended 30 September 2019,and

iii. Balance sheet as at that date.

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