TOPIC : 1 INTRODUCTION TO BOOK
KEEPING
INTRODUCTION TO BOOK – KEEPING FORM ONE
TOPICAL EXAM
CHOOSE THE MOST CORRECT ANSWER FROM A GIVEN ALTERNATIVE
1. An art of recording business transactions in sets of book sin terms of money or money worth.
A) Closing entries
B) A list of assets and liabilities
C) Book-keeping
D) Classification of business transactions
2. Which of the following statement is not correct?
A. Assets – capital =liabilities
B. Liabilities + assets=capital
C. Assets =capital +liabilities
D. Capital=assets - liabilities
3. Credit transaction are;
A. Creditors transaction
B. Transaction for credit note
C. Transaction made for future payment
D. Information relating to selling of good
4. Which of the following is liabilities
A. Office furniture
B. Creditor
C. Debtor
D. Cash at bank
5. Which of the following is not non –current assets?
A. Motor van
B. Land
C. Bank balance
D. premises
6. Business activities are separate from owners activities this is:
- The cost concept
- Money measurement concept
- Business entity concept
- Dual aspect concept
7. Business transaction is:
A. Movement of money or money worth from one person to another
B. The arts of keeping books of accounts
C. Information relating to buying and selling
D. Non of the above
8. Which of the following is not the objectives of bookkeeping;
A. Determination of profit
B. Business control
C. Knowledge of credit dealing
D. Making the business known to every one
9. The two side of an account are:
A. Right and left
B. Receipt and payment
C. Debit and credit
D. Profit and loss
10. Which of the following is an accounting concept:
A. Conservatism
B. Full disclosure
C. Going concern
D. Consistence
11. Match the items in list A with the item in list B to give the most correct meaning
List A
I. Creditor
II. Dual aspect concept
III. Accounting equation
IV. User of accounting information
V. Debit
VI. Account
VII. Ledger
VIII. Business
IX. Capital
X. assets
List B
A. Total resources supplied to the business by the owner
B. The left hand side of an account
C. Any legal economic activities aiming at profit
D. These are resources owned by the business.
E. Main book of account where transaction are recorded
F. Part of double entry record containing details of transaction
G. Tax inspectors
H. Assets =capital +liabilities
I. A person whom money is owed for goods or services
J. Accounting principle
K. Accounting concept
L. Accountant
Fill in the blanks with the correct answers
12. Mention the advantages of business control
a) …………………………………………………………………………………………………………
b) ………………………………………………………………………………
c) ………………………………………………………………………………………
13. Mention the objectives of book-keeping and explain any two of them
I. ………………………………………………………………………………………………..
II. ………………………………………………………………………………………………..
III. …………………………………………………………………………………………………………..
IV. ……………………………………………………………………………………………………..
V. ……………………………………………………………………………………………………………
Explanations.
I. ………………………………………………………………………………………………….
II. ……………………………………………………………………………………………
I. …………………………………………………………….
II. ……………………………………………………………..
III. ………………………………………………………………
IV. ……………………………………………………………..
V. ……………………………………………………………..
15. Mention four accounting convention
I. ………………………………………………………….
II. ………………………………………………………….
III. ……………………………………………………………
IV. …………………………………………………………….
16. Name and explain the user of accounting information
………………………………………………………………………………………….
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…………………………………………………………………………………………………….
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17. Explain the following accounting concepts
a) Going concern
b) Money measurement
c) Duality
d) Accrual
e) Cost
f) Periodic matching of cost and revenue
g) Business concept
18. Name and explain the four accounting conventions
…………………………………………………………………………………………………
……………………………………………………………………………………………………………
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19. Explain the six relevance of accounting concepts and principles
………………………………………………………………………………………………………
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20. Outline the accounting concept that are closely related
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TOPIC : 2 BOOKS OF PRIME ENTRY
BOOK – KEEPING FORM ONE: TOPICAL EXAM.
BOOKS OF PRIME ENTRY.
SECTION A:
MULTIPLE CHOICE QUESTIONS.
1. Choose the most correct answer.
(i) The column in the account which shows the page of the ledger is called.
A. Details column
B. Folio column.
C. Ledger Account column
D. Amount column.
(ii) It is both a book of prime entry and part of the ledger
A. Purchase journal
B. Sales Journal
C. Journal
D. Cash Book.
(iii) An allowance made on the date of sale irrespective of the date of payments is known as.
A. Trade discount
B. Cash discount
C. Discount allowed
D. Discount received
(iv) Return inward deals with goods.
A. Purchased on credit.
B. Returned by the firm to supplier
C. Sold on credit.
D. Returned to the firm by its customer.
(v) A document issued to the customer whenever a customer returns goods to the supplier is called?
A. Credit note
B. Debit note
C. Invoice
D. Pro – forma invoice.
(vi) Posting is.
A. Making statement of money worthiness of business organization.
B. Selling the assets which are easily bought
C. Sending letters, parcels and money orders to the post office
D. The process of transferring the debt and credit items from the journal to the respective amount in the ledger.
(vii) Which of the following goods can be returned to supplier for compensation?
A. Consumable goods.
B. Durable goods
C. Expired goods.
D. Perishable goods.
(viii) The total of the purchases journal at end of every month is:
A. Credited to the individual creditors account in purchases ledger
B. Credited to the sundry creditors account in the ledger.
C. Debited to the nominal account in general ledger.
D. Debited to the purchases account in the general ledger.
(ix) Account for expenses, income and capital is called?
A. Real account
B. Impersonal account
C. Nominal account.
D. Creditors account
(x) The following are uses of general journal except?
A. Correcting errors
B. Showing opening entries.
C. Adjusting entries.
D. Determining profit.
2. Match the items from list A with those in list B.
|
LIST A |
LIST B |
|
(i) Constitutes the source of all original information on the financial transaction of a business. (ii) A document relating to goods returned by buyer or refund to him/her when buyer has been overcharged. (iii) Serve as evidence of payment to creditors through the bank and withdrawals made for office or personal use. (iv) Record movement of inventories. (v) A book of Original entry in which receipts and payment of money are recorded. (vi) Reduction given to customers when calculating the selling prices of goods. (vii) Goods that a business return back to suppliers (viii) A ledger used for accounts of confidential nature. (ix) A ledger that contains the bank and cash account. (x) Refers to those account related to the property of the company. |
A. Cash discount B. Trade discount C. Return inward journal D. Return outward journal E. Cheque counterfoils F. Bank pay – in - slips G. Private ledger H. Confidential ledger I. Prime books J. Source documents K. Credit note L. Debit note M. Sales ledger N. Purchases order. O. Bin card. P. Cash. Q. Impersonal accounts. R. Personal accounts |
SECTION B:
3. (a) Define ledger.
(b) Mention (8) items contained in bank pay – in – slips
4. Mention any 10 source documents.
5. The following information was obtained from the ledger account balance in the books of Makuchuro on 31st December, 2013.
Sales 16,700,000
Purchase 4,100,000
Discount received 200,000
Discount allowed 140.000
Wages 500,000
Salaries 900,000
Drawings 1,000,000
Capital 26,000,000
Opening inventory 620,000
Closing inventory 580,000
Required:
Prepare the Journal proper to close off the ledger accounts.
SECTION B:
6. Enter up the sales day book, purchase day book and returns day book from the following information. Then post the individual items to the relevant account in sales ledger and purchase ledger. Thereafter transfer the totals of the day books to account in general ledger.
2013.
June: 01: Credit purchase: Burton Sh. 250,000: Mathew Sh. 145,000 and Andrew Sh. 350,000.
June: 04: Credit sales to: David Sh.410, 000: White Sh. 340,000 and Black Sh. 270,000.
June: 10: Credit purchase from Thomas Sh. 147,000; Burton Sh. 100,000 and Mathew Sh. 50,000.
June: 12: Goods returned by us to Burton Sh. 35,000 and Mathew Sh. 50,000.
June: 15: Goods returned to us by White Sh. 25,000 and Black Sh. 30, 000
June: 20: Credit purchase from Thomas Sh. 186,000; Burton Sh. 250,000 and Mathew Sh. 80,000.
June: 22: Credit sales: White Sh. 150,000 and David Sh. 220,000
June: 25: Goods returned by us to Thomas Sh. 20,000 and Mathew Sh. 15,000.
June: 30: Goods returned to us by white Sh. 18,000.
7. Record the following transaction in the sales Journal and post to the ledger thereafter.
May: 01: Sold the following goods to Mwibala
20 exercise books @ shs. 500
20 boxes of pencils @ shs. 1,000
May : 15: Sold the following goods to Mzizima High School.
15 atlases @ 1200
30 graph papers @ sh. 50.
May: 28: Invoice issued to Rozalia Rashid for goods sold shs. 90,000
TOPIC : 3 BALANCE SHEET
BALANCE SHEET
SECTION A
1. Choose the most correct answer form the given alternatives.
(i) Net profit is calculated in
A. Trading account
B. Trial balance
C. Balance sheet
D. Profit and loss account
(ii) To find the value of closing stock at the end of accounting period in:
A. Do this by stock taking
B. We look in the stock account
C. Deduct opening stock from cost of goods sold
D. Deduct cost of goods sold from sales
(iii) Which of these best describes a balance sheet?
A. A account providing the book balance
B. A record of closing entries
C. A listing of balances
D. A statement of assets.
(iv) The descending order in which current assets should be shown in the balance sheet in:-
A. Stock, debtors, bank, cash
B. Cash, bank, debtors, stock
C. Debtors, stock, bank, cash
D. Stock, debtors, cash, bank
(v) Which of these best describes fixed assets?
A. Are bought to be used in the business
B. Are items which will not wear out quickly
C. Are expensive items bought for the business
D. Are of long life and are not bought specifically for resale.
1. What is balance sheet?
2. Why balance sheet has no DR and CR side?
3. Mention the two types of assets
4. Mention the types of liabilities
5. Mention the two types of drawings
6. Mention the three types of capital
7. What is balance sheet equation?
8. Write a short notes of the following:
(i) Assets
(ii) Fixed assets
(iii) Current assets
(iv) Capital
(v) Working capital
(vi) Capital owned
(vii) Capital employed
(viii) Liabilities
(ix) Drawings
(x) Net profit
9. Complete the gaps in the following table?
|
SN |
Assets |
Capital |
Liabilities |
|
1. 2. 3. 4. 5. 6. |
15,700 _______ 27310 _______ 20500 3690 |
8650 24700 _______ 38150 17620 _______ |
_______ 8850 6350 13430 _______ 22600 |
10. Complete the table below
|
SN |
Fixed assets |
Capital |
Current assets |
Liabilities |
|
1) |
10,000 |
8,650 |
5700 |
|
|
2) |
24700 |
3000 |
8850 |
|
|
3) |
20,310 |
9,310 |
16,000 |
|
|
4) |
30,000 |
20,000 |
30,000 |
|
|
5) |
50,000 |
30,000 |
20,000 |
11. Define the following
(i) Liabilities
(ii) Long term liabilities
(iii) Short term liabilities
(iv) Drawings
(v) Cash drawing
(vi) Drawing in hand
12. Prepare the balance sheet from the following information
Capital 14,000
Net profit 6,000
Drawings 5,000
Creditors 2,000
Loan from NBC 12,000
Bank over draft 4,000
Machine 13,000
Motor vans 4,000
Furniture 2,500
Premises 5,300
Stock 1700
Debtors 1500
Cash at Bank 3,000
Cash in hand 2,000
13. Chepesi Ltd had the following information on Dec. 2001.
Capital 70,000
Net loss 40,900
Drawings 19,600
Gross profit 1,020
Opening stock 450
Salaries 1,250
Balance b/d 1700
Sales 1500
Creditors 40500
Hand 30000
Premises 15,000
Furniture 12,000
Stock 2500
Discount allowed 1600
General expenses 1350
Purchases 1070
Required to: Prepare Chepesi Ltd statement of financial position as 31 December, 2001
14. What is final account?
15. The following trial balance was extracted from the books of D and G at 31.12.1999.
THE TRIAL BALANCE
|
Details |
DR |
CR |
|
Capital Drawings Purchases Sales Return inward Return outward Furniture Motor vehicles Salaries Carriage inward Rent Insurance Stock at 1st January Carriage outward Advertising Cash at bank Cash in hand Discount allowed Discount received Debtors Creditors |
2410 44240
1200
2000 5000 14880 1920 370 850 6290 380 1210 2780 120 310
6000
90,000
|
15,000
69470
980
550
4000 90,000 |
Required to: Prepare income statement and statement of financial position as at 31 Dec. 1999.
16. The following are transaction for free time resort at Ukonga Dar es Salaam at 31 Dec. 2006.
Purchases 72,000
Stock at start 12,000
Carriage on sales 3,000
Stock at close 7500
Discount allowed 800
Interest received 260
Sales 130,000
Return outward 1500
Bank over draft 12,000
Rent 4960
Debtors 1800
Capital 123,100
Creditors 3500
Cash in hand 15600
Salaries 3,000
Land 13,000
Drawings 11,000
Furniture and fittings 6,200
Return inwards 10,000
Motor van 117,000
Requires to:
(i) Prepare trial balance
(ii) Income statement
(iii) Balance sheet
TOPIC : 4 CLASSFICATION OF ACCOUNTS
CLASSIFICATION OF ACCOUNTS
SECTION A
1. Multiple choice questions. Choose the most correct answer from the given alternatives.
(i) Capital and drawing are classified as:-
A. Personal a/c
B. Nominal a/c
C. Proprietor a/c
D. Rea a/c
(ii) The two types of accounts are:-
A. Nominal a/c and Real a/c
B. Personal a/c Nominal a/c
C. Personal and impersonal a/c
D. Nominal and Real a/c
(iii) Which of the following is not real account?
A. Building a/c
B. Furniture a/c
C. Debtors a/c
D. Stock a/c
(iv) A ledger comprises of customers accounts who bought goods on credit from business firm?
A. General ledger
B. Sales ledger
C. Purchases ledger
D. Private ledger
(v) Contain the bank account and cash accounts
A. Cash book
B. Cash sales
C. Private ledger
D. Business firm
(vi) Which of the following is not revenue expenditure?
A. Buying a motor van
B. Buying fuel
C. Repair for a motor van
D. Repairing insurance.
(vii) Supplier accounts are found in:-
A. Purchase ledger
B. General ledger
C. Sales ledger
D. Nominal ledger
(viii) A ledger used for impersonal accounts such as assets, revenues and other income and expenditure
A. Sales ledger
B. General ledger
C. Purchase ledger
D. Private ledger
(ix) A ledger for accounts of confidential nature e.g. owners capital a/c, drawings a/c, load a/c, Trading and Profit and Loss a/c
A. General ledger
B. Sales ledger
C. Purchases ledger
D. Private ledger
(x) Impersonal accounts are divided into two, namely:-
A. Real a/c and nominal a/c
B. Personal and impersonal a/c
C. Debtors and creditors a/c
D. Real and unreal a/c
SECTION B
2. Write a short note on the following.
(i) Account
(ii) Personal accounts
(iii) Impersonal accounts
(iv) Real accounts
(v) Nominal accounts
3. Describe the classes of accounts.
4. Complete the following table by showing the class of account.
|
Name of account |
Classification |
|
1. Advertising 2. Drawing 3. Furniture 4. Sales 5. Ibrahim 6. Bank 7. Cash 8. Purchases 9. Vodacom 10. Discount allowed |
5. What is revenue account?
6. What is debtors account?
7. What is creditors account?
8. Draw the chart to show the nature of balances of each class of account.
9. Classify each of the following account into:-
(i) Personal a/c
(ii) Real a/c
(iii) Nominal a/c
a) Salary A/C
b) Machine A/C
c) Imalaseko A/C
d) Carriage A/C
e) Furniture A/C
f) Nyambari Bookshop A/C
g) Sales A/C
h) Premises A/C
i) Capital A/C
10. Fill the gaps/space provided to complete the table below.
|
Name of account |
Classification a/c |
|
1. Cash a/c 2. ____________________ 3. Capital a/c 4. ____________________ 5. Sales a/c 6. ____________________ 7. Wages a/c 8. ____________________ 9. Machines |
__________________ Personal a/c __________________ Real a/c __________________ Nominal a/c __________________ Personal a/c |
11. Put a tick to the appropriate nature, and balance of the following a/c
|
Name of Account |
DR |
CR |
|
(i) Debtors a/c (ii) Income a/c (iii) Creditor a/c (iv) Salary a/c (v) Creditor a/c (vi) Expenditure a/c (vii) Machine a/c (viii) Discount received a/c (ix) Sales a/c (x) Cash a/c/ (xi) Mwaisomo a/c (xii) Interest received a/c |
TOPIC : 5 ELEMENTARY FINANCIAL STATEMENT
ELEMENTARY FINANCIAL STATEMENT.
SECTION A
1. Multiple choice questions. Choose the most correct answer from the given alternatives.
(i) Gross profit is:-
A. Excess of sales over cost of goods sold
B. Sales less purchases
C. Cost of goods sold plus opening inventory
D. Net profit less expenses of the period.
(ii) Net profit is calculated in the:-
A. Trading account
B. Income statement
C. Trial balance
D. Statement of financial position.
(iii) To find the value of closing inventory at the end of the period we:-
A. Physically count the inventory
B. Look in the inventor account
C. Deduct opening inventory from cost of goods sold
D. Deduct costs of goods sold from sales.
(iv) The credit entry for net profit is on the credit side of:-
A. The trading account
B. The income statement
C. The drawings accounts
D. The owners equity account
(v) Which of these describe a statement of financial position?
A. A statement providing the book’s balances to show financial position.
B. A record of closing entries
C. A listing of balances
D. A statement of assets.
(vi) Descending order in which the current assets should be shown in the statement of financial position
A. Inventory, trade receivable, bank, cash.
B. Cash, bank, trade receivable, inventory
C. Trade receivable, stock, bank, cash
D. Inventory, trade, receivable, cash, bank.
(vii) Which of these describe the non current assets?
A. Items bought to be used in business
B. Items which will not wear out quickly
C. Expensive items bought for the business.
D. Items having long life in the business and not bought for resale.
(viii) The purpose of preparing trade account is to find:
A. Net sale
B. Net purchase
C. Gross sales
D. Gross profit
2. What is:-
(i) Trading account
(ii) Trading expenses
(iii) Trading income
(iv) Purchases
(v) Return outward
(vi) Cost of goods sold
(vii) Gross profit
(viii) Gross loss
(ix) Return inward
(x) Net sales
(xi) Carriage outward
(xii) Carriage inward
(xiii) Profit and loss account
(xiv) Net loss
(xv) Net profit.
SECTION B
3. Mention the two types of returns.
4. Mention the two types of carriage
5. Mention five reasons made customers return goods to suppliers.
6. From the following information, prepare the trading account as at 31st December, 2003.
Opening stock 20,000/=
Purchases 5,000/=
Sales 30,000/=
Return inward 2,000/=
Return outward 4,000/=
Closing stock 3,000/=
7. IBM had the following information at 28th February, 2006.
Opening stock 80,000/=
Purchases 120,000/=
Carriage inward 10,000/=
Sales 100,000/=
Sales return 20,000/=
Purchases return 5,000/=
Closing stock 15,000/=
Required to: prepare IBM Trading a/c as at 28th Feb. 2006
8. Write short notes on the following:-
a) Income statement
b) Trading profit and loss account
c) Gross profit
d) Net profit
e) Expenses.
9. From the following information prepare the income statement as at 4th March 2003.
Sales 100,000/=
Return inward 20,000/=
Stock at start 50,000/=
Stock at close 17,000/=
Purchases 15,000/=
Discount allowed 5,000/=
Return outward 3,400/=
Discount received 54,800/=
Carriage outward 12,500/=
Insurance 4,500/=
10. Prepare trading profit and loss account from the following:-
Sales 40,000/=
Sales return 15,000/=
Opening stock 12,700/=
Purchases 45,000/=
Insurance 14,000/=
Discount allowed 12,000/=
11. FANIKIWA Traders had the following trial balance at 31st March 2003.
|
Name of account |
DR |
CR |
|
(i) Cash at hand (ii) Capital (iii) Purchase (iv) Machine (v) Sales (vi) Rent (vii) General expenses (viii) Creditors (ix) Bank (x) Total |
81,00
27,500 5,000
3,000 1,000
17,200 84,700 |
40,000
29,200
15,500
84,700 |
Required to: Prepare
(i) Trading account
(ii) Income statement
12. Name the importance of preparing trading profit and loss account.
TOPIC : 6 PRINCIPLE OF DOUBLE ENTRY
PRINCIPLE OF DOUBLE ENTRY
SECTION A
1. Multiple choice questions. Choose the most correct answer from the given alternatives.
(i) Which of the following keeps all accounts?
A. Cash book
B. Ledger
C. Diary book
D. Folio column
(ii) Double entry in book keeping means recording business transaction
A. Thrice in the books of accounts
B. Twice in the books of account
C. Once in the books of account
D. Several times in the books of accounts.
(iii) How assets in the firm do increase?
A. Through selling some assets
B. Through buying
C. Through disposing
D. None of the above.
(iv) In the cash book which side does the capital account appears?
A. Debit side
B. Debit and credit side
C. Credit side
D. Folio column
(v) Capital and drawings are classified as:-
A. Personal accounts
B. Nominal accounts
C. Real account
D. Proprietor accounts
(vi) Cash purchase of machine for business will be recorded as:-
A. DR – cash a/c – CR – Machine a/c
B. DR – Machine a/c – CR – Cash a/c
C. DR – Bank a/c – CR Machine a/c
D. DR – Machinery a/c – CR – Bank.
(vii) Property held for long time in the business is called?
A. Non current liabilities
B. Fixed capital
C. Non current asset
D. Capital
(viii) Which of the following is not revenue expenditure?
A. Buying a motor van
B. Buying fuel for a motor van
C. Repairs for a motor van
D. Renewing insurance for motor van
(ix) Supplier accounts are found in?
A. Purchases ledge
B. General ledger
C. Sales ledger
D. Nominal ledger
(x) The left hand side of the account is?
A. Debit
B. Credit
C. Receipt
D. Payment
(xi) When company borrows money from the Bank, the company cash will?
A. Increase
B. Decrease
C. Be borrowed
D. Reduced
(xii) Which of the following is not importance of double entry?
A. Scientific
B. Systematic
C. Keeping records
D. Complete
(xiii) ABC Ltd paid creditors by cheque to complete double entry:-
A. Debit creditors a/c – credit ABC Ltd Bank a/c
B. Credit creditors a/c Debit ABC Ltd cash a/c
C. Debit Bank a/c creditors Debtors a/c
D. Debit Debtors a/c credit ABC Ltd Bank a/c
(iv) The right hand side of an account
A. Debit
B. Credit
C. Creditors
D. Debtors.
2. Name the importance of double entry book keeping.
3. Name the features of double entry book keeping.
4. State the double entry principle.
5. Complete the table below
|
Transactions |
Account to be debited |
Account to be credited |
|
a) Received cash from Debtors |
||
|
b) Paid creditors by cheque |
||
|
c) Bought office machinery on credit |
||
|
d) Paid Jonas by cheque |
||
|
e) Putting additional capital by cheque |
6. Baba Songambele started a business on 1st Jan 2013 with capital worth Tshs. 500,000/= during the month of January 2013 the following transaction took place
January 3 purchased goods for cash 80,000/=
January 4 Bought painting materials for cash 80,000/=
January 5 Sold goods for cash 30,000/=
January 6 bought goods for cash 80,000/=
January 8 purchased goods paid cash 10,000/=
January 10 bought goods for cash 50,000/=
January 11 paid wages for cash 5,000/=
Required to: By using double entry principle records the above transactions in cash book and complete the double in respective ledger accounts.
7. The following information was obtained from the books of Kijana on Feb 2015.
February 1 Kijana started business with cash in hand 200,000/=
February 2 Purchases building for cash 15,000/=
February 3 bought goods for cash 12,000/=
February 4 bought machine for cash 5,000/=
February 7 paid rent for cash 10,000/=
February 8 received cash from Debtors 20,000/=
February 10 paid creditors by cheque 15,000/=
February 18 bought postage stamp for cash 40,000/=
February 21 cash sales 1,700,000/=
February 22 bought goods for cash 1,200,000/=
Required to record the above transaction using double entry principle, balance off the accounts and bring down the balances.
8. Sheline and Ephraim started a business on 1st July 2001 with capital in cash of 50,000/=
July 2 bought furniture for cash Tshs. 1,000/=
July 3 bought goods for cash Tshs. 22,000/=
July 4 sold goods for cash 27,000/=
July 5 paid carriage for cash Tshs. 8,500/=
July 10 cash sales Tshs/ 12,000/=
July 15 bough goods for cash Tshs. 25,000/=
July 18 paid rent for cash Tshs. 12,000/=
July 20 paid advertising in cash Tshs. 7,500/=
July 22 sold goods for cash Tshs. 150,000/=
July 25 sales to date cash Tshs. 200,000/=
July 26 paid wages for cash Tshs. 6,000/=
July 27 purchases goods for cash Tshs. 5,000/=
July 28 sold goods for cash Tshs. 3,500/=
Required to:- Balance the cash a/c as on 30th July and complete the double entry.
Balance off the accounts and bring down the balances.
9. ABC Ltd started a business with capital 40,000/= on 1st march 201
March 2 purchased of furniture for Tshs. 15,000/=
March 4 sales of goods for Tshs. 30,000/=
March 5 paid electricity bills for Tshs. 4,000/=
March 6 advertised for Tshs. 6,000/=
March 7 paid wages for Tshs. 20,000/=
March 8 sold good for cash Tshs. 10,000/=
March 19 Sales Tshs. 50,000/=
March 21 transport cost Tshs. 60,000/=
March 22 paid water bill Tshs. 4,000/=
March 23 sales Tshs. 25,000/=
March 27 purchases Tshs. 5,000/=
March 28 purchases Tshs. 4,000/=
Required to:- Balance the cash account complete the double entry and balance off the account as at 30 march.
TOPIC : 7 TRIAL BALANCE
TRIAL BALANCE
SECTION A
1. Multiple choice questions. Choose the most correct answer from the given alternatives
(i) A list of debit and credit balances extracted from ledger is known as:-
A. Extracts
B. Transactions
C. Trial balance
D. Balance sheet.
(ii) Which of the following are not advantages of Trial Balance?
A. Help in checking arithmetical accuracy of the ledger entry
B. It shows personal Real and nominal a/c
C. Used in preparation of final accounts
D. Used for decision making by the owner and others.
(iii) ______ is not recorded in trial balance. It is shown in additional information.
A. Opening stock
B. Closing stock
C. Assets
D. Expenses
(iv) In which column of Trial balance the capital recorded?
A. Debit column
B. Credit column
C. Detail column
D. Receipt column
(v) The first step in preparing the trial balance is:-
A. Balancing all ledger accounts
B. Bringing down the balances
C. Recording the transactions
D. Monitoring the balances.
(vi) If the debit total and credit total of trial balance do not agree. This is clear evidence that there is:-
A. An error
B. Over stating
C. Under stating
D. Omission.
(vii) Which of the following statement is incorrect?
A. Assets – Capital = Liabilities
B. Liabilities + Capital = Assets
C. Liabilities + Assets = Capital
D. Assets – Liabilities = Capital
(viii) Which of the following is not an asset?
A. Buildings
B. Cash balance
C. Debtors
D. Loan from to Harris
(ix) Which of the following is liability?
A. Machinery
B. Creditor for goods
C. Motor vehicles
D. Cash at bank
(x) Which of the following describe the meaning of purchases?
A. Items bought
B. Goods bought on credit
C. Goods bought for resale
D. Goods paid for
(xi) Which of the following should be called sales?
A. Office fixture sold
B. Goods sold on credit
C. Goods sold for cash
D. Sales item previously included in purchases.
(xii) Which of the following is correct?
A. Profit does not alter capital
B. Profit reduces capital
C. Capital can only come from profit
D. Profit increase capital
(xiii) Which of the following best describes a trial balance?
A. Show the financial position of business
B. It is a special account
C. Shows all the entries in the books
D. It is the list of balances on the books.
SECTION B
2. Which a short notes on the following terms:-
(i) Error of omission
(ii) Error of principle
(iii) Error of commission
(iv) Error of compensating
3. Name the advantages and disadvantages of trial balance.
4. List down the importance of preparing trial balance.
5. Enter the following transactions in Abell books on double entry balance off the accounts and extract the Trial balance
January 1: started a business with cash 100,000/=
January 6: bought motor van for 30,000/=
January 8: cash sale to date 40,000/=
January 12 bought goods worth 23,000/=
January 15: paid stationeries for cash 15,000/=
January 20: paid rent in cash 10,000
January 25: cash purchases 25,000/=
January 31 sold goods worth 46,000/=
6. You are provided with the following information for month May 2006 for J and M printing Ltd.
May 1st started business with capital Tshs. 80,000/= in cash
May 2nd bought goods on credit form J. ward Tshs. 61,000/=
May 4th sold goods on credit to J Sharpe Tshs. 34,000/=
May 6th Paid rent by cash Tshs. 18,000/=
May 9th J Sharpe paid J and M his account by cheque Tshs. 34,000/=
May 10th F Titimus paid his account by cheque 100,000/=
May 11th J and M paid M Taylor by cheque Tshs. 17,400/=
May 15th paid carriage by cash Tshs. 3,800/=
May 18th bought goods on credit from S. Green Tshs. 29,100/=
May 21st sold goods on credit to Boycott Tshs. 81,000/=
May 31st paid rent by cheque Tshs. 23,000/=
7. Record the following transactions in Musa’s books on double entry and extract the Trial balance on 2007.
October 1: Started a business with cash Tshs. 11,000/=
October 2: bought furniture for cash Tshs. 3,200/=
October 6: bought goods on credit from Jean 5,400/=
October 8: cash sales to date 4,500/=
October 11: paid for office expenses 2,400/=
October 14: paid electricity 2,800/=
October 18: Sold goods on credit to Justice 6,200/=
October 23: paid salary by cash Tshs. 2,000/=
October 25: paid Jean 3,300/=
October 28: sold goods for cash 5,000/=
October 30: received cash from debtors 4,500/=
October 31: cash purchases Tshs. 1,800/=
8. The following balances at 31 December, 2013 were extracted from books of Robin.
Tshs.
Sales 160,000/=
Sales return 2,600/=
Purchases return 3,400/=
Purchases 84,000/=
Wages 26,000/=
Heating and lighting 3,160/=
Rent payable 5,000/=
Rent receivable 1,000/=
Advertising 2,900/=
Postage 2,740/=
Discount allowed 6,100/=
Plant and machinery 50,000/=
Delivery van 9,000/=
Bank 2,300/=
Trade debtors 3,700/=
Trade creditors 7,400/=
Drawings 3,700/=
Capital 8,800/=
Required to: Extract the trial balance and calculate amount of capital.
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