PRESIDENT’S OFFICE
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
DODOMA REGION
FORM FOUR PRE MOCK EXAMINATION
BOOK - KEEPING
Time: 3 Hours April 2021
Instructions
1. This paper consists of three sections A, B and C with a total of 9 questions.
2. Answer all questions in section A and B and only two (2) questions from section C.
3. Section A carries twenty (20) marks, section B forty (40) marks and section C forty (40)
marks.
4. Non programmable calculators may be used.
5. Cellular phones, and other authorized materials are not allowed in the examination room.
6. Write your examination number on every page of your Answer booklet(s).
SECTION A (20 MARKS)
Answer all questions in this section
1. for each of the items (i)-(xv), choose the correct answer from among the given
Alternatives and write its letter beside the item number in the answer sheet provided
(i) If sales is 20,000 and profit make up is 25%, determine the amount of
cost price
A: 13,600 B: 12,000 C: 16,000 D: 12,900 E: 20,600
(ii) Which book of prime entry records the sale or purchase of non-current
Assets?
A: General journal B: Sales journal C: Purchases journal
D: Cash book E: Sales return day book
(iii) If cash sale amount to Tshs 100,000/= paid direct into the bank account,
the correct double entry will be to
A: Debit sales account and credit cash account by sh.100, 000
B: Debit cash account and credit bank account by sh.100, 000
C: Debit bank account and credit sales account by sh.100, 000
D: Debit bank account and credit cash account by sh.100, 000
E: Debit sales account and credit bank account by sh.100, 000
(iv) How much is to be reimbursed if a petty cashier has spent Tsh.189,00/=while
his cash float is Tsh.200,000/=
A: Tsh,11,000/= B:Tsh 389,000/= C: Tsh,189,000/=
D:Tsh,200,000/= E:Tsh,21,000/=
(v) Working capital is a term meaning.
A. The excess of current liabilities over current liabilities
B. The excess of the current assets over the current liabilities
C. the excess of the current assets over non-current liabilities
D. The excess of current assets over non-current assets.
E. The excess of non-current Assets over current liabilities
(vi) Natasha and Ndengwe share profits and losses in the ratio 3:2. Their partnership
recorded net profits of shs. 1,400, interest on capital shs. 420, partners’ salaries
shs. 100 and drawings shs. 280, Determine Ndengwe’s share of the profits.
A. TZS 840 B. TZS 560 C. TZS 464 D. TZS 696 E. TZS 506
(vii) From the following categories of errors, identify the category of errors which
affect only one account
A. Casting errors. B. Errors of principle. C. Errors of omission.
D. Errors of original entry. E. Errors of commission.
(viii) In the business of C. Sangster, who owns a clothing store, which of the
following is the capital expenditure?
A. Fixtures and New Van bought B. Shop fixtures bought and
wages of assistants C. Wages of assistants and new van bought
D. Wages of assistants and Petrol for Van E. Fixtures and salaries.
(ix) Manufacturing account is used to calculate:
A. Production cost paid in the year B. Total cost of goods produced
C. Production cost of goods completed D. Gross profit on goods sold
E. Prime cost of goods manufactured
(x) Depreciation can be described as the : _______
A. Amount spent to buy a non –current asset
B. Salvage value of a non-current asset consumed during its period
C. Cost of the non-current asset consumed during its period
D. Amount of money spent replacing non-current asset
E. Cost of old asset plus new assets purchased
(xi) A bank reconciliation statement is a statement:
A. Sent by bank when the account are overdrawn
B. Drawn to verify cash book balance with the bank statement balance
C. Drawn up by the bank to verify the cash book
D. Sent by the bank to the customers when errors are made
E. Sent by the bank customers to the friends.
(xii) If two totals of trial balance do not agree, the difference must be entered in:
A real account B. The trading accounts C. A nominal account
D. The capital account E. A suspense account
(xiii) The accounting equation is expressed in the financial statement called:
A. statement of financial position B. income statement
C. expenditure statement D. reconciliation statement
E. statement of change in equity
(xiv) If we take goods for own use, we should
A. Debit drawings Account: Credit Purchase Account
B. Debit Purchases Account: Credit Drawings Account
C. Debit Drawings Account: Credit Inventory Account
D. Debit Sales Account: Credit Inventory account
E. debit inventory Account: Credit Drawing Account
(xv) if a partnership maintains a fixed capital account, then the partner’s share
of profits is:
A. Credited to the partner’s drawings account B. debited to the
partner’s capital account C. credited to the partner’s capital
account D. credited to the partner’s current account
E. debited to the partner’s current account
2. For each of the items (i)-( v) match the narrations of bank reconciliation Items in column
A with their corresponding names in column B by writing the letter of the correct response
beside the item number in the answer sheet provided
COLUMN A COLUMN B
i. these are payments made by a firm or A. Standing order
person through cheque but they are not B. Dishonored cheques
yet sent by customers to the bank to C. Unpresentedcheques
effect those payments. D. Errors
ii. These are payments received by a firm E. Unaccredited cheques
or person by cheque but they are not yet F. Dividents
passed through the banking system. G. Direct transfers
iii. These are fees deducted by the bank for H. Bank charges
different services made on the current
account.
iv. These are payments made by the
customer firm direct to the bank account
of supplier firm.
v. These are payments directed by the
account holder to be made by the bank
on his behalf.
SECTION B (40 MARKS)
Answer all questions in this section.
3. In 1991 Mr. Chipepeto bought a motor car for the cost value of sh.8, 000,000/= with the
aim of assisting him in business. But three years later he decided to dispose it for a book
value of sh.6,700,000/=
a) What is the term used to mean the difference between cost value and book value.
b) Outline four reasons that could be the causes for him to dispose the car for less than
the cost value.
4. The DSM Rotary club, has provided you with the following information:-
As at 31st December 2000 2001
Subscription in arrears 6400 8800
Subscription in advance 1200 3400
Subscription during the year - 20,200
Insurance expenses owing (in arrears) 3700 2700
Insurance expenses prepaid (in advance) 4400 5200
Insurance paid during the year - 16,800
Required: Prepare A Subscription account and Insurance account, clearly showing
amounts to be transferred to income and expenditure accounts for year 2001.
5. Define the following terms
a) Discount received
b) Invoice
c) Discount allowed
d) Carriage inwards
e) Carriage outwards
6. (a) Mr Kyamba wants to start a business, but before commencement he needs to learn
book keeping. Outline five objectives for him to study book keeping.
(b) Briefly explain three types of a cash book.
SECTION C (40 MARKS)
Answer two questions only from this section.
7. Panguso& company limited own a manufacturing industry which had the following
records for the year ended at 31st December 2007.
Inventory at 1st January 2007: raw materials sh.760, 000
Finished goods sh 360,000
Purchases of raw material sh.420, 000
Sales of finished goods sh.2, 490,000
Factory Fuel & power sh.320, 000
Royalty sh.500, 000
Depreciation of works machine sh.88, 000
Market value sh.1, 800,670
General office expense sh.10, 740
Manufacturing wages sh.170, 000
Inventory at 31 stDec 2007: raw material sh.900, 000
Finished goods sh.580, 000
Works in progress sh.734, 000
You are required to prepare
a) Statement of manufacturing costs for the year ended at 31 stDec 2007
b) Income statement for the year ended at 31.12.2007
8. XY Ltd provides for depreciation of its machinery at 20% per annum on cost; it charges
for a full year in the year of purchase but no provision is made in year of sale/disposal.
Financial statements are prepared annually to 31th December.
2015
January 1 Bought machine ‘A’ 10,000
July 1 Bought machine ‘B’ 6,000
2016
March 31 Bought machine ‘B’ 8,000
2017
October 7 Sold machine ‘A’ – proceeds 5,500
November 5 Bought machine ‘D’ 12,000
2018
February 4 Sold machine ‘B’ – proceeds 3,000
February 6 Bought machine ‘B’ 9,000
October 11 Exchanged machine ‘D’
for machine valued at 7,000
Prepare;
(a) The machinery accountfor the period 1st January 2015 to 31st December 2018
(b) The accumulated provision for depreciation on machinery account, for the
period 1st January 2015 to 31st December 2018.
9. The financial of the GGM trading company ended on 30th November 2014. You have been
asked to prepare a total amount receivable and total amount payable for the draft final
amounts. You are able to obtain the following information for the financial year the book
of original entry.
Sales – Cash 344,890
– Credit 268,187
Purchase – Cash 14,440
– Credit 496,600
Total receipts from customers 600,570
Total payment to suppliers 503,970
Discount allowed to credit customer 5,520
Discount received from credit suppliers 3,510
Refund given to cash customers 5,070
Balance in sales ledger setoff against balance in the purchase ledger 700
Bad debt written off 780
Increase in the allowance for doubtful debts 900
Credit note issued to credit customers 4,140
Credit note received from credit suppliers 1,480
According to the audited financial statement for the previous year account receivable and
account payable as to 1st December 2013 were 26,550 and 43,450 respectively
Required;
Draw up the relevant total accounts entering end of year total for account receivable and
account payable.