Creditors 700,000 Provision for Depreciation 1st January, 2017 Land and buildings 240,000 Motor vehicles 160,000 Drawings: Esau 80,000 Chuwa 60,000 Linus 60,000 Land and building at cost 1,20,000 Motor vehicle at cost 400,000 Office expenses 80,000 Purchases 1,700,000 Rates 80,000 Sales 3,000,000 Selling expenses 280,000 Stock on 1st January, 2017 400,000 4,860,000 4,860,000 The following information was also provided: (i) Stock at 31st December, 2017 TZS 600,000. (ii) Non-current assets are written off at the following rates: Land and buildings at 5% per annum on cost and Motor vehicle at 20% per annum on cost. (iii) Rates prepaid at 31st December, 2017 TZS 40,000. (iv) Bad debts amounting to TZS 10,000 were written off and bad debts provision to be adjusted to 5% of the outstanding debtors at 31st December, 2017 (v) At 31st December, 2017 TZS 35,500 was outstanding in respect of selling expenses. (vi) According to the partnership agreement: Linus is to get a salary of TZS 120,000 per annum. Interest of 10% per annum is to be allowed on the partner’s capital accounts. No interest is to be allowed on partner’s current accounts and no interest is to be charged on partners drawings. Using the information provided, prepare: (a) Partners Trading, Profit and Loss Appropriation Accounts for the year ending 31st December, 2017 (b) Partners’ Current Accounts for the year ending 31st December, 2017 and bring down the balances at 1st January, 2018.

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Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number in the answer booklet provided.

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Manyama Bwire keeps his books on a single entry system. 31.12.2016 31.12.2017 TZS TZS Club furniture 100,000 120,000 Stock 60,000 20,000 Debtors 120,000 140,000 Prepaid expenses 40,000 Creditors 40,000 ? Outstanding expenses 12,000 20,000 Cash 22,000 6,000 Receipts and payments during the year were as follows: Receipts from debtors 420,000 Payment to customers 200,000 Carriage inwards 40,000 Drawings 120,000 Sundry expenses 140,000 Furniture purchased 20,000 Other information: There was a considerable amount of cash sales. Credit purchases during the year amounted to TZS 230,000. Provide for doubtful debts to the extent of 10% on debtors. From the information provided, prepare: (a) Trading, Profit and Loss Accounts for the year ending 31st December, 2017. (b) Total Debtors and creditors Control accounts as well as Cash account. (c) Balance sheet as on 31st December, 2017.

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If someone owns a grocery store, which of the following is a capital expenditure?

Which of the following is a liability?

Which of the following is an example of recurrent expenditure?

State five advantages of self-balancing ledgers and control accounts. Briefly explain five benefits of using Petty Cash System.

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The following information was extracted from the books of Rhombo Traders for the year ending 31st December, 2017. Using the information provided, calculate: (i) The value of goods available for sale. (ii) The gross profit for the year. (iii) The net profit for the year. (iv) Rate of stock turnover. (v) Percentage of expenses over sales. Show how the following transactions should be recorded in the ledger accounts by writing the name of the account to be debited and credited for each transaction: | Transaction | Account to be debited | Account to be credited | | :-------------------------------------------------------------------- | :-------------------- | :--------------------- | | (i) Started business putting cash into a business bank account. | | | | (ii) Bought machinery on credit from Unique Machines Traders. | | | | (iii) Withdrew cash from the bank and placed it in the cash box. | | | | (iv) Bought a second hand motor van paying in cash. | | | | (v) Sold some of the machinery on credit to B. Brothers | | |

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The trial balance extracted from the books of Maji Meupe on 31st December, 2017 showed debit totals of TZS 491,400 and credit totals of TZS 440,400. The trading profit and loss account drawn up on the basis of this trial balance revealed a gross profit of TZS 143,000 and a net profit of TZS 36,000. A careful re-examination of his books revealed the following errors: (i) Sales day book was overcast by TZS 10,000. (ii) Goods costing TZS 8,000 had been taken by Maji Meupe for his personal use. No record was made of this fact. (iii) Cash discount amounting to TZS 6,000 allowed by a creditor was debited to discount allowed account. (iv) A payment of TZS 5,000 for carriage on sales was debited to carriage inwards account. (v) A balance of TZS 1,000 in the personal account of M. Migire, a debtor, was not included in the list of total debtors on the trial balance. (vi) During the year Maji Meupe sold his private farm for TZS 50,000 and paid in the proceeds to the firm’s bank account. This fact was only recorded in the cash book. (vii) A new warehouse was built at a total cost of TZS 50,000, including materials costing TZS 35,000 and labour TZS 15,000. Materials used were journalised through purchases book and the wages paid were debited to ordinary wages account. (viii) No record has been made for goods valued at TZS 14,000 taken by the proprietor, Maji Meupe for his personal use. (ix) Goods costing TZS 25,000 purchased from Azam had been credited to Azania’s personal account. Using the information provided, prepare:

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