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Solution 4.8
In the books of Mjasiria Ltd
11% T-bonds account interest payable 30 Jun. & 31 Dec.
st
th
Dr Cr
Nominal Income Capital Nominal Income Capital
FOR ONLINE READING ONLY
Particulars TZS TZS TZS Particulars TZS TZS TZS
“000” “000” “000” “000” “000” “000”

1 Apr. 2021 50,000 1,375 43,625 30 Jun. 2,750
st
th
LANGUAGE EDITING
Bank Inter-Bank
31 Dec.
st
2,750
Inter-Bank
31 Dec. 31 Dec.
st
st
Invest. income 4,125 Bal c/d 50,000 43,625
-Profit/Loss
50,0000 5,500 43,650 50,000 5,500 43,650
1 Jan. 2022 LANGUAGE EDITING
st
50,000
43,625
Bal. b/d

Workings:
90
1. Purchase price = # 50 ,000 000 = 45 ,000 000
,
,
100
2. Interest accrued (1st Jan – 1st April) = 3 # 11 # 50 ,000 000 = , 1 375 000
,
,
12 100
3. Capital cost = 45,000,000 – 1,373,000 = 43,625,000

4. Investment income (six months instalments June-Dec 2021)

= 6 # 11 # 50 ,000 000 = , 2 750 000 = 2,750,000
,
,
12 100
Note:
Mjasiria Ltd received TZS 2,750,000 on 30 June as 1 interest instalment, but the
st
th
company had already paid TZS 1,375,000 during acquisition as part of the purchase
price. Hence interest income earned from 1 April to 30 June will be TZS 2,750,000
th
st
less TZS 1,375,000. Meanwhile, the second instalment received on 31 Dec 2021 is
st
fully recognised as interest income.

Student’s Book Form Five
115

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