Page 121 - Accountancy_F5

Solution 4.3

Dr In the books of Hasa Ltd Cr
Common Shares Account

Nominal Income Capital Nominal Income Capital
Particulars
FOR ONLINE READING ONLY
Particulars TZS TZS TZS TZS TZS TZS
“000” “000” “000” “000” “000” “000”

1 Jan. 2,000 2,500 15 Dec. 500 600
st
th
Purchase Bank sale - Bank
LANGUAGE EDITING
1 Sept. 31 Dec.
st
st
Rights issue 1,000 800 Balance c/d 2500 2750
15 Dec.
th
Profit on sales 50
investments

3000 3350 3000 3350

1 Jan.
st
Balance b/d 2500 2750
Workings:
1. Nominal value of right issue = 1 # , 2 000 shares # TZS , 1 000 = , 1 000 000
,
2
2. Capital value: Investment cost on rights issue =
1
2 # , 2 000 shares # TZS 800 = TZS 800 ,000
3. Amount received on sales = 500 shares × TZS 1,200 = TZS600,000

4. Determination of profit or loss
Proceeds TZS 600,000

Less: Cost = 500 # (TZS 2,500,000 + TZS 800,000) TSZ 550,000

300
Profit on sale investment TZS 50,000

Student’s Book Form Five
108

23/06/2024 17:35
ACCOUNTANCY_DUMMY_23 JUNE.indd 108
ACCOUNTANCY_DUMMY_23 JUNE.indd 108 23/06/2024 17:35