Page 78 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

Maintaining accurate records of business transactions is crucial for business owners
and managers to gain insights into the enterprise’s financial performance. These
records enable businesses to monitor cash flow, track revenue and expenses, and
identify trends and potential areas for improvement. Additionally, detailed records of
transactions support strategic decision-making by providing real-time financial data
and performance metrics, helping businesses identify opportunities and mitigate risks
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effectively. By utilising modern accounting software and automation tools, businesses
can streamline the record-keeping process by reducing manual errors. They can also
increase efficiency, and ensure that critical financial information is securely stored and
easily accessible for informed business planning and growth.

Revision exercise 4

1. Describe various source documents that are employed in the preparation of the
books of prime entry, clearly showing the role played by each document in the
accounting process.
2. Why is it important for businesses to prepare journals in their accounting processes?

3. Enter the following transactions in Joanita’s purchases daybook, purchase returns
daybook, and show total purchases and returns for the month of May 2022.

May 1 Bought 10 bags of beans, each 5kgs @ TZS 10,000 from National Dis-
tributors Ltd.

4 Bought 4 gallons of cooking oil for @ TZS 15,000 from GEFCO.

5 Returned one bag of beans to National distributors LTD. because it
weighed less.
8 Bought 10 dozens of bed sheets from Kilimanjaro Textile @ TZS
22,000.

10 Returned to GEFCO 1 gallon of cooking oil because it was not the
quality ordered.

15 Purchased from GEFCO 100 dozen of baby milk @ TZS 16,000.
20 Returned 1 dozen of bedsheets to Kilimanjaro Text tiles because they
were of poor quality.

25 Returned 5 dozen of baby milk to GEFCO that were spoilt on transit.

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Student’s Book Form One

Book Keeping Form 1 New 2024 FINAL.indd 70 18/10/2024 10:14