Page 105 - Accountancy_F5

Solution 3.8
Journal entries
S/N PARTICULARS Dr Cr
TZS TZS

1. Salary expenses account 118,800,000
FOR ONLINE READING ONLY
(PAYE) Income tax payable account 5,900,000
Medical Insurance payable account 5,200,000
NSSF payable account: employee’s contribu- 11,800,000
tion
LANGUAGE EDITING
Salary payable A/C 95,700,000
(Being recognition of employees’ salaries)
Salary expense A/C 11,800,000
NSSF payable account: 11,800,000

(Being contribution made by employer to NSSF/
PSSF)
(PAYE) Income tax payable account 5,900,000

Medical Insurance payable A/C 5,200.000
NSSF payable account 2,360,000
Salary payable A/C 9,510,0000
Bank 129,800,000
(Being salary expense Paid)
3. Statement of profit or loss 129,800,000
Salary expenses account 129,800,000
(Being close the salary expenses through state-

ment of profit or loss)

Exercise 3.4
1. Payroll summary of Gerald, a sole proprietor shows gross pay of TZS 1,440,000,
PAYE TZS 204,000, NHIF TZS 43,200 and NSSF TZS 72,000.
Required: Prepare journal entries to record these transactions.

2. Mr. Biheri Chuma is an employee of Besera Group Ltd. He is being paid at a normal
rate of TZS 25,000 per hour, on 176 hours a month (22 days per month). During
July 2024, total hours worked were 188. BESERA Group Ltd. pays overtime at a
rate of 1.5 of normal rate. Mr. Biheri is also entitled to the following allowances:
meals allowance: TZS 14,000 per day, transport allowance TZS 12,000 per day

Student’s Book Form Five
92

23/06/2024 17:35
ACCOUNTANCY_DUMMY_23 JUNE.indd 92
ACCOUNTANCY_DUMMY_23 JUNE.indd 92 23/06/2024 17:35