Book Keeping · Paper 1 · 2022
45 questions 🇹🇿 NECTA3-hour timed simulation · auto-graded · counts toward ranking
Pay & start exam →Section A
How is the amount of capital in trade credited?
For each of the items (i) - (v), match the descriptions of Book Keeping concepts 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 booklet provided.
| Column A | Column B |
|---|---|
| The exchange of equal values or benefits between two or more persons. | A Accounting B Book Keeping |
| The immediate receipts or payments of cash for a financial transaction. | C Cash transactions D Credit transactions |
| The transaction for which payments or receipts of cash is made later. | E Creditor F Debtor |
| The summary of business transactions affecting a person, property, income or expenses. | G Business transactions H Economic trnnsactions |
| The name of a rerson to whom the business owes money. |
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How is the term Prime cost in manufacturing account categorized?
When a customer returns goods, the seller should:
Which of the following represents owner's equity?
The process of transferring entries from the journal to the ledger is called:
Depreciation is an expense that:
Which accounting principle requires that financial statements reflect the economic substance of transactions rather than just their legal form?
When would the total of these outstanding, unrecorded purchases and returns of goods for each department be recorded when preparing the departmental accounts?
Which of the following combination of accounting entry and account represent the correct entry and account to which the total of the sales journal is posted?
Which one is the characteristic of exchequer account?
Accrued expenses are expenses that have been incurred but not yet:
What is the accounting equation?
The cost of goods sold is calculated as:
Which accounting concept states that a business is assumed to continue operating indefinitely?
Section B
For most businesses, control of cash includes both bank and cash transactions. Firms are required to bring together the separate cash and bank transactions in one book. Briefly describe three types of cash books which are used to record cash and bank transactions.
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Before the preparation of financial statements for a particular accounting period, businesses need to make adjustments. This is done to particular accounts in order to ensure the financial statements are accurate. Show how you would treat the following in the statement of financial position.
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Post the entries from the following cash book to their respective ledger accounts and balance off the accounts as at 31st August 2016.
| Date | Details | Cash | Bank | Date | Details | Cash | Bank |
|---|---|---|---|---|---|---|---|
| 1/8/2016 | Capital | 94,000 | 2/8/2016 | Bank | 90,000 | ||
| 2/8/2016 | Cash | 90,000 | 5/8/2016 | Wages | 8,000 | ||
| 29/8/2016 | Sales | 22,180 | 7/8/2016 | Purchases | 2,362 | ||
| 17/8/2016 | Motor van | 69,000 | |||||
| 28/8/2016 | Firelighter | 2,800 | |||||
| 30/8/2016 | Rent | 3,818 | |||||
| 20,000 | 10,200 | Balance c/d | |||||
| 116,180 | 90,000 | 116,180 | 90,000 | ||||
| 1/9/2016 | Balance b/d | 20,000 | 10,200 |
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Section C
From the following list of balances extracted from the books of Saida Majid for the Month of July 2019, prepare her Trial Balance as at 31st July 2019.
| Details | TZS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 4,000,000 | ||||||||||
| Bills payable | 100,000 | ||||||||||
| Purchases | 1,820,000 | ||||||||||
| Insurance of buildings | 100,000 | ||||||||||
| Capital | 3,000,000 | ||||||||||
| Cash at bank | 150,000 | ||||||||||
| Interest receivable | 20,000 | ||||||||||
| Carriage inwards | 80,000 | ||||||||||
| Loan from CRDB | 2,000,000 | ||||||||||
| Purchases returns | 200,000 | ||||||||||
| Accounts payable | 700,000 | ||||||||||
| Office furniture | 1,000,000 | ||||||||||
| Office building | 2,000,000 | ||||||||||
| General expenses | 50,000 | ||||||||||
| Motor vehicle | 2,000,000 | ||||||||||
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Write up the Two Column Cash Book of Mihemo Enterprises and balance off the Cash and Bank accounts at 30th November 2018.
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The audit of M. Johnson's books for the year ended 31st December 2017 revealed a debit balance of TZS 3,012,000 in the suspense account and the following accounting errors: (i) The salaries and wages account was overstated by TZS 350,000 and rent received account also was overstated by TZS 350,000. (ii) The purchases account was under cast by TZS 1,100,000. (iii) Sales amounting to TZS 2,500,000 were wrongly recorded as TZS 5,200,000 in the sales account. (iv) An amount paid to Aisha was debited to her account as TZS 9,800,000 instead of TZS 8,900,000. (v) Rent account was under cast by TZS 100,000. (vi) Fees income was over cast by TZS 80,000. (vii) Discounts received TZS 24,000 was debited to discounts allowed. (viii) A credit sale of TZS 20,000 to Regina was passed through the purchases journal. (ix) Cash received from Christina TZS 80,000 was correctly entered in the cash book but posted to Christian account as TZS 88,000. (x) Interest received TZS 15,000 was debited to commission received in error. (xi) Cash paid to Tarimo TZS 22,000 was correctly entered in the cash book but posted to Tarimo Ltd as TZS 20,000. Prepare Journal entries (narrations are not required) and the Suspense Account to correct the accounting errors.
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