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accounts. It is more efficiency if salaries are paid by cheque or credit transfer. Payroll
summary looks as shown in the specimen below:
PQR Company
Production department: Payroll summary for the month ended ………….
Employee’s Basic Overtime Other Gross Salary PAYE NSSF NHIF Net pay
name pay pay allowances pay advance
FOR ONLINE READING ONLY
TZS TZS TZS TZS TZS TZS TZS TZS TZS
A xx xx xx xx xx xx xx xx xx

B xx xx xx xx xx xx xx xx xx
C xx xx xx xx xx xx xx xx xx
TOTAL xxx xxx xxx xxx xxx xxx xxx xxx xxx

Example: 3.7
Msilanga Company pays employees per week as detailed below (Amounts in TZS):
Name Weekly Deduction per week
Pays (Medical Insurance)
TZS TZS
Ally 7,500,000 300,000
Sakina 8,000,000 300,000
Blandina 7,800,000 400,000

Peres LANGUAGE EDITING 300,000
6,200,000
Additional Information:
(a) Each employee pays 5 per cent for income tax per month.
(b) All employees contribute 10 per cent monthly for NSSF.

Required: Prepare the payroll summary for the month ended 31 December 2023.
st
Solution 3.7

Msilanga Company
Payroll Journal Summary for the month of December 2023 (Amounts in TZS)
S/N Name of Basic pay Gross pay Income Medical NSSF Net pay
Employee tax insurance
‘000’ ‘000’ ‘000’ ‘000’ ‘000’ ‘000’
1. Ally 30,000 30,000 1,500 1,200 3,000 24,300
2. Sakina 32,000 32,000 1,600 1,200 3,200 26,000
3. Blandina 31,200 31,200 1,560 1,600 3,120 24,920
4. Peres 24,800 24,800 1,240 1,200 2,480 19,880
TOTAL 118,000 118,000 5,900 5,200 11,800 95,100

Student’s Book Form Five
90

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