Page 161 - Accountancy_F5

Extract of the head office statement of profit or loss
Profit from the main office operations xxxxxx

Add: Net profit earned by DSM branch operations 6,000,000

Total income xxxxxxx
FOR ONLINE READING ONLY
In the books of branch: In Dar es Salaam

Extract of branch statement of profit or loss
Gross profit xxxxx

Less: Branch expenses xxxxx
LANGUAGE EDITING
Net profit 6,000,000

Dr Head office current account Cr

Amount Amount
Particulars Particulars
TZS TZS

Bank: refund 40,000,000 Bank: initial deposit 30,000,000
Goods returns 3,000,000 Bank: office building 150,000,000
Balance c/d 227,000,000 Goods from head office 84,000,000

Net profit: statement of P/L 6,000,000
270,000,000 270,000,000

Activity 5.3
Kabya Ltd is a food processing entity, which initially specialised in the agricultural
sector before expanding its operations into the live inventory and fishery sectors. In
agricultural food processing, the company has three cooking oil processing plants
located in Dar es salaam, Singida and Kigoma and three branches processing wheat
flour located in Arusha, Dar es salaam, and Mwanza. In the live inventory sector, the
company has a big plant in Shinyanga processing meats for local market and export,
and in the fishery sector, the company has two branches, one in Mtwara and the other
in Mwanza.
Initially, the company had only one accounting clerk in each of the branches just
for capturing bookkeeping records which are then submitted to the headquarters for
financial report preparations. However, following its expansion the company has been
struggling in recent years with record keeping challenges because of the volume of
transactions undertaken by branches and the need for the branches to make strategic
decisions to suit their sectors and local operating environment.

Student’s Book Form Five
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