Book Keeping · Paper 1 · 2010
16 questions 🇹🇿 NECTA3-hour timed simulation · auto-graded · counts toward ranking
Pay & start exam →Section A
Credit notes issued by a firm will be entered in its
The following is a Trial Balance extracted from the books of a sole proprietor, S.M. Nondo, as at 31st December 1999. S. M. NONDO Balance sheet as at 31st December 1999 DR. CR. NAME OF ACCOUNT Shs. Shs. Stock 1st January 1999 50,000 Freehold Premises 240,000 Bills 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 Bills Payable 15,000 Sundry Creditors 43,000 Cash in Hand 2,400 Bank Overdraft 18,600 Drawings 6,000 Capital Account 300,000 902,900 902,900 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 amounts to 500/= (d) Rates accrued 400/= (e) Closing stock was 60,000/= (f) During the year Mr. S.M. Nondo took goods worth 2,000/= for his personal use. Required: Prepare trading and profit and loss account for the year ending 31st December, 1999 and a balance sheet as at that date.
| NAME OF ACCOUNT | DR. Shs. | CR. Shs. | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Stock 1st January 1999 | 50,000 | |||||||||||||||||||||||||
| Freehold Premises | 240,000 | |||||||||||||||||||||||||
| Bills 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 | |||||||||||||||||||||||||
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Section B
Match the responses in List B with the statements in List A by writing the letter of the correct response beside the item number.
| List A | List B | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (i) A list of debit and credit balances and extracted from the ledger. | A Incomplete records | ||||||||||
| (ii) The main book of account in which all accounts are recorded. | B Bank charges | ||||||||||
| (iii) Charges made by the bank to cover expenses of handling the account. | C Depreciation | ||||||||||
| (iv) Goods sent to an agent for sale. | D Journal proper | ||||||||||
| (v) The process of taking raw materials provided by nature and turning them into more sophisticated and useful products. | E An invoice | ||||||||||
| (vi) The accounting term for declining value of fixed assets due to wear and tear in the process of production over a given time. | F Working capital | ||||||||||
| (vii) A document issued by a seller when goods are purchased on credit. | G Exchequer Account | ||||||||||
| (viii) An accounting system where records of only part of the transactions are available. | H Manufacturing | ||||||||||
| (ix) An account kept by the central Bank (BoT) where all the government revenues and records are kept. | I Ledger | ||||||||||
| (x) The amount of capital available for running a business. | J Consignment | ||||||||||
| K Trial Balance | |||||||||||
| L Circulating capital | |||||||||||
| M Account sale | |||||||||||
| N Balance sheet | |||||||||||
| O Bank expenses | |||||||||||
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Write short notes on the following terms:
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On 1st of January, 2000 Masantula started up a new business. During the year ended 31st December, 2000 the following debtors were found to be bad and were written off on the dates indicated below: Shs. 10.03.2000 Shelukindo 88,000 30.05.2000 Shemaombe 51,200 31.08.2000 Shekidele 9,600 On 31st December, 2000, the 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 the:
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Mvumi Consumers Cooperative shop has three departments (Butter and eggs, Poultry and beef, and Bottled goods). The members desired to know the performance of each department for the financial year ending 31st December, 1983. From the following list of balances you are required to prepare a Departmental Trading and Profit and Loss account in columnar form. NOTE: With the exception of the following, expenses are to be apportioned equally amongst the departments. (a) Delivery expenses, proportionate to sales. (b) Commission, 2% of sales. (c) Salaries and wages, and Insurance, in the proportional of 6:5:4 respectively. (d) Discount received, 1.5% of purchases. (e) Other expenses like depreciation, rent and rates, advertising, as well as administration and general expenses should be allocated equally in all departments.
| Particulars | Butter and eggs | Poultry and beef | Bottled goods | Total |
|---|---|---|---|---|
| Rent and rates | 2,100 | |||
| Delivery expenses | 1,200 | |||
| Commission | 1,920 | |||
| Purchases | 26,400 | 21,800 | 17,400 | 65,600 |
| Discount received | 984 | |||
| Salaries and wages | 15,750 | |||
| Advertising | 600 | |||
| Sales | 40,000 | 32,000 | 24,000 | 96,000 |
| Depreciation | 1,470 | |||
| Opening stock | 7,300 | 5,620 | 4,560 | 17,480 |
| Administration and general expenses | 3,945 | |||
| Closing stock | 6,200 | 4,327 | 4,873 | 15,400 |
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