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THE UNITED REPUBLIC OF TANZANIA

PRESIDENT’S OFFICE, REGIONAL ADMINISTRATION AND LOCAL

GOVERNMENT

NJOMBE REGION

FORM SIX PRE-MOCK EXAMINATION

CODE: 153/2 ACCOUNTANCY 2

TIME: 3:00 HRS Tuesday, 22

nd August 2023 P.M

Instructions

1.This paper consists of section A and B with a total of eight (08) questions

2.Answer all questions in section A and three (03) questions from section

3.Section A carries forty (40) marks and section B carries sixty (60) marks

4.non-Programmable calculator maybe used.

5.Cellular phones and any unauthorized unauthorized materials are not allowed in the

examination room

QUESTION

NUMBER

QUESTION

ATTEMPTED

PUT A TICK(V)

FOR EXAMINER’S USE ONLY

MARKS EXAMINER’S

SIGNATURE

1

2

3

4

5

6

7

8

TOTAL

MARKS

CHECKER’S INITIALS

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SECTION A (40 MARKS)

Answer all questions from this section

1. Write short notes on the following

(i) Auditor

(ii) Internal Audit

(iii) External Audit

(iv) Unqualified Audit Report

2. Explain five (05) Major Components of Computerized Accounting System

3. Nyanza Ltd Company Supply their product in cases charged out to customer at TZS

250@ Customers are given a credit of TZS 200 per cases provided if they returned cases

in a good condition within three months of issued. At the end of each financial year all

cases in stock in the warehouse and in the hand of customers are valued at 50@

On 1st January 1st January 2007,1200 cases were in the Company warehouse and 4800

cases were in the customers.

During 2007, 3000 cases were bought for 100@

14,400 cases charged out to customers

12,500 cases returned by customers

300 cases scrapped and sold for 10@

On 31st December 2007, 5,000 cases were within customers who were still entitled to.

Required

(a) Cases Stock Account

(b) Cases Suspense Account

4. Explain the meaning of the following as used in Company Accounting

(a) Share Capital

(b) Share Premium

(c) Share Discount

(d) Par Value of Share

(e) Call in Arrears of Share

SECTION 'B' (60 Marks)

Answer three (03) questions from this section

5. A company makes a single product with a sales price of TZS 10 @ product and a

Marginal (Variable) cost of TZS 6 @ unit. Fixed Costs are TZS 60,000 per annum

Required

(a) Number of units to Break Even

(b) Sales in Shillings at the BEP

(c) Contribution Margin Ratio (CMR)

(d) Number of units to be sold in order to achieve a profi of TZS 20,000 p.a

(e) Number of units required to increase the profit by TZS 1,000 p.a

Under the following conditions

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(i) Because of increasing cost, the Marginal Cost is expected to be TZS 6.50 per unit

(ii) Fixed Costs are expected to be TZS 70,000 p.a

(f) If the taxation rate is 40%, How many units will be needed to be sold to make a profit

after tax of TZS 20,000

6. Benja and Willy who share Profit and Loss equally decided to dissolve the partnership as

at 31st December 1978 their Balance Sheet on that date was as follows

Capital Accounts: Fixed Assets:

Benjamin.................................12,000

Plant and Machinery....................10,000

Willy...........................................8,000

Motor vehicle.................................5,000

Current Accounts: Current Assets:

Benja............................................1,500

Stock................................................4,500

Willy..............................................8,000

Debtors............................................5,300

Current Liabilities: Cash at Bank...........................3,200

Creditors..........................................5,700

28,000

28,000

The cash collected from debtors was TZS 5,000, Plant and Machinery TZS 8,000, Motor vehicle

5,500 and Stock TZS 3,800, the expenses of dissolution was TZS 200 and discount received on

creditors was TZS 300

Show the following Ledgers

(i) Realization Account

(ii) Partner's Capital Account

(iii)Bank Account

7. Mlangwa Enterprises is a small business with four (04) employees. Workers have 8 hours

working day for 20 days in a month. Time worked in excess of this compensated at twice

the rate. There is a guarantee pay for 160 hours. During the month ended October 31st

2000, the following data were made available.

S/N EMPLOYEE

NAMES

HOURS WORKED RATE PER

HOUR(TZS)

1 Musa 150 400

2 Rajabu 170 400

3 Chacha 160 350

4 Mkude 180 500

Additional information