THE UNITED REPUBLIC OF TANZANIA, PRIME MINISTER'S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT 

FORM THREE TERMINAL EXAMINATIONS 

062 BOOK KEEPING

Time 3:00 HRS May, 2026

INSTRUCTIONS

1. This paper consists of section A, B and C with a total of nine (9) questions.
2. Answer all questions in section A, B and C.
3. Section A carries fifteen (15) marks, section B carries forty (40) marks and C carries forty-five (45) marks.
4. Non programmable calculators may be used.
5. Communication devices and any unauthorized materials are not allowed in the examination room.
6. Write your examination number on every page of your answer booklet (s).

SECTION A (15 marks)

Answer all questions

1. For each of the items (i) - (x) choose the correct answer from the given alternatives and write its letter beside the item number of the correct answer in the box provided.

i) One of the following describe meaning of capital expenditure:

1. Extra capital paid n by the proprietor
2. The extra purchase of goods for sale
3. The cost of running the business on a day-to-day basis
4. Money spent on buying fixed assets or adding value to them
5. Money spent as revenue expenditure

ii) When the financial statement is prepared, the Bad debts Account is closed by transfer to the;-

1. Income Statement,
2. Statement of financial position,
3. Debtor’s personal account
4. Provision for doubtful Debts Account
5. Trading account

iii) In the trial balance, the balance on the provision for Doubtful debts Account is;-

1. Shown as a credit item,
2. Not shown,
3. Shown as a debit item,
4. Sometimes debit, sometimes credit.
5. Shown as bad debts.

iv) An invoice shown a total of shs 3200/= less 2.5% cash discount. If this was paid in time, the Amount of the cheque paid would be for;-

1. T.Shs 2960
2. T.Shs 3040
3. T.Shs 3120
4. T.Shs 2800
5. T.shs 3280

v) Given an opening capital of TZS 500,000, Closing capital of TZS 1,800,000 and drawings for the year of TZS 200,000: How much would be the profit or loss for the year?

1. Loss for the year is TZS 1,000,000
2. Loss for the year is TZS 2,100,000
3. Profit for the year is TZS 2,500,000
4. Loss for the year is TZS 1,100,000
5. Profit for the year is TZS 1,500,000

vi) Which item would not be considered in the process of preparing Receipts and Payments account for the religious organization?

1. Cheque paid during the year
2. Subscription received
3. Surplus
4. Bank balance
5. Receipts from sales of an assets

vii) A sole trader started business with cash from her savings of TZS 1,000,000, and equipment valued TZS 200,000, motor van valued TZS 2,000,000 and a loan from Upendo SACCOS TZS 300,000. How much would be a capital of a sole trader?

1. TZS 1,200,000
2. TZS 3,500,000
3. TZS 2,900,000
4. TZS 2,200,000
5. TZS 3,200,000

viii) Which of the following would be entered in the journal?

1. Payment for cash purchases
2. Fixture bought for cash
3. Credit sales of goods
4. Sales of surplus machinery
5. Goods sold for cash

ix) Errors are corrected through the journal because:

1. It saves the book-keepers time
2. It saves entering them in the ledger
3. It is much easier to record entries in the journal
4. It shows assets in the credit side and liabilities in the debit side
5. It provides a good record explaining the double entry system.

x) Which of the following is liability?

1. Loan from J John
2. Building
3. Accounts receivable
4. Work in progress at the end
5. Closing stock of finished goods

2. Match the items in Column A with the responses in Column B by writing the letter of the correct response below the corresponding item number in the table provided.

SECTION B (40 marks) 

Answer all questions in this section

3. (a) Describe two (02) difference between capital expenditure and revenue expenditure.

(b) Some of the following items should be treated as capital expenditure and some as revenue expenditure. For each of them state which classification applies:

1. The purchase petrol for generator for use in the business . . . . . . . . . . . . . . . . . 
2. Carriage paid stocks sold in the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
3. Complete construction of the premises at cost of 150 millions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Payment made for a buying stationery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
5. The purchase of a bricks and others construction materials for new office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4. (a) Describe the meaning of the Books of Prime entry.

(b) Books of prime entry are also known as books of original entry or subsidiary books. As an expert explain six (6) types of books of prime entry.

5. DOLY estate extracted a trial balance from is book- keeping records on 30^th June 2024. The trial balance failed to agree and the difference was TZS 247,000, a shortage on the debit side. This was placed to a suspense account pending further investigation. The following errors were later found:

1. A TZS 1,105,000 cheque payment for general expenses had been entered in the cash book but no entry had been made in the general expenses account.
2. A cheque payment for wages TZS 1,131,000 had been correctly entered in the cash book but was entered as TZS 1,031,000 in the wages account
3. (iii)Commission received of TZS 325,000 had been entered twice in the commission income account
4. A cheque payment for telephone expenses TZS 624,000 had been debited to both the telephone expenses account and the bank account
5. Stationaries expenses TZS 715,000 had not been entered in the stationaries expenses account to correct the errors.

Enter the above transactions in the general journal (ignore narrations) and post to the suspense account to correct the errors.

6) (a) Cash book is a book used to record movement of cash into the business and out of the business. Identify four types of cash book

(b) Monica opened a new business dealing with second hand clothes on a whole sale basis. She started the business on 1^st July 2021 with a capital of TZS 40,000,000 in cash.

 Required : 

Enter the above transactions in a cash account and balance the account as at 31^st July 2021 

SECTION (C 45 marks)

Answer all questions in this section

7. From the following information prepare the sales ledger control account for the month of August 2012.

8. A company depreciates its plant at the rate of 25% per annum, straight line method, for each month of ownership. From the following details draw up the plant account and the provision for depreciation account for each of the years 2004, 2005,2006 and 2007.

• 2004 bought plant costing TZS 2,600 on 1^st January.
• Bought plant costing TZS 2,100 on 1^st October.
• 2006 bought plant costing TZS 2,800 on 1^st September.
• 2007 sold plant which had been bought for TZS 2,600 on 1^st January 2004 for the sum of TZS 810 on 31^st august 2007

You are also required to draw up the plant disposal account.

9. From the following Trial balance of Erick Brown , store owner Prepare the Income statement for the year ended 31^st December 2007, and a Statement of Financial Position as at 31^st December 2007, taking into consideration the adjustments shown below:

Trial balance as at 31^st December 2007:

Additional information:

1. Closing stock at 31^st December 2007 TZS 120,000
2. Accrued wages TZS 5,000
3. Rates prepaid TZS 500
4. The provision for doubtful debts to be increased to 10 per cent of debtors
5. Telephone account outstanding TZS 220
6. Depreciation shop fittings at 10 per cent per annum, and van at 20 per cent per annum on cost

THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, LOCAL ADMINISTRATION AND LOCAL GOVERNMENT

BOOKEEPING- TERMINAL EXAMINATION-MAY

FORM THREE

TIME: 2½HRS                                                                  2020

NAME:______________________________CLASS:___________

INSTRUCTIONS

• Answer all questions

1. Choose the correct answer from the given alternatives write its letter beside the item number

(i) Which of the following is a liability?

1. Debtor
2. Loan from exim bank
3. Building
4. Prepaid expenses

 (ii) The cash payment of T.shs 439,000 to Juma would appear as follows:

1. Credit Juma account, credit cash account
2. Debit Juma account, credit cash account
3. Debit bank account, credit Juma account
4. Debit cash account, credit Juma account

 (iii) Which of the following are personal accounts?

1. Building and machine
2. Wages and salaries
3. Account receivable and account payables
4. Profits and loss

 (iv)In the trial balance, accumulated provision for depreciation account is

1. Shown as a credit item
2. Not shown as it is part of depreciation
3. Shown as a debit item
4. Sometimes shown as a credit, sometimes as a debit

 (v) Which of the following is not correct?

1. Assets – capital=liabilities
2. Liabilities + capital=assets
3. Liabilities + Assets=capital
4. Assets – liabilities =capital

 (vi) Which of the following should be charged in the trading, profit and loss account(income statement)

1. Office rent
2. Work-in-progress
3. Direct materials
4. Carriage on raw materials

 (vii) At the end of trading  period, bad debt account is closed and transferred to the

1. Balance sheet
2. Profit and loss account
3. Trading account
4. Allowance for doubtful debits account

 (viii) Revenue expenditure is

1. The extra capital paid in buying non-current assets
2. The extra purchase of goods for sale
3. Money spent on selling fixed assets
4. The cost inairred in running the business on a day to day basis

 (ix) An allowance made on the date of sales in respect of the date of payment is

1. Discount allowed
2. Cash discount
3. Trade discount
4. Quantity discount

 (x) If shs 1000/= was added to purchases instead of being added to a fixed asset

1. Net profit only would be understated
2. Net profit only would be overstated
3. Both gross profit and net profit would be understated
4. Both gross profit and net profit would be overstated

2. Match the following by choose the correct answer from column B and write its letter beside the item number in column A

 SECTION B

3. Write short notes on the following 

1. Capital expenditure
2. Bad debts
3. Depreciation of non-current asset
4. Manufacturing account
5. Single entry system

 4. Kibaha education centre had received house rent for 1982 amounting to sh. 72,000. Out of this amount shs. 4,000 related to the year ending December 1983.

Required:

Rent received account to show the amount transferred to the profit and loss account

SECTION C

5. Jangua started business on 1^st January 1993.  Purchases and disposals of machines over three years were as follows.

The machines are depreciated on straight line method using rate of 20% per annum

Required:

1. Machine account
2. Provision for depreciation account
3. Disposal of machines account

 6. K owns a store, her records are incomplete. You have been called in to prepare her accounts.

Through investigation the following information was obtained

                                                              01.01.2013               31.12.2013

Stock                                                     2,100                            2,240

Trade creditors                                        960                            1,000

Motor vans                                            1,200                           1,000

Debtors                                                1,300                           1,040

Rates pre-paid                                         80                                96

Cash at bank                                           900                           2,344

Additional information

Drawings during the year amounted to Tshs 120 per week

Legacy of Tsh.400 received on March 2013 had been paid into the business bank account 

Required

1. Statement of affairs at 1^st January 2013
2. Statement of affairs at 31^st December 2013
3. Statement of profit or loss for the year 2013

7. From the following prepare manufacturing, trading profit and loss account for the year ended 31.12.2013

Stock at 01.01.2013:

Raw materials                                        1,845,000

Work in progress                                    2,360,000

Finished goods                                      1,747,000

Purchases: raw materials                       6,430,000

Carriage on raw materials                       160,500

Direct labour                                         6,581,000

Office salaries                                       1,692,000

Rent                                                        270,000

Office lighting and heating                      576,000

Depreciation:

Works machinery                                       830,000

Office equipment                                       195,000

Sales                                                          20,060,000

Factory fuel and power                                592,000

Additional notes on 31.12.2013

Stock at 31.12.2013

Raw materials                                          2,021,000

Work-in-progress                                      1,739,000

Finished goods                                          2, 1488,500

Rent is to be apportioned as follows:

       Factory     (20) / (30)

       Office    (10) / (30)