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business. Juma managed the head office and Hanifa was employed as the branch
manager. All goods were purchased by head office and goods sent to the branch were
invoiced at cost. The following was the trial balance as on 31 December 2024.
st

Head office Branch
FOR ONLINE READING ONLY
Dr Cr Dr Cr
TZS TZS TZS TZS
“000” “000” “000” “000”
Drawings 3,700
Capital 18,000
LANGUAGE EDITING
Furniture and fittings, at cost 1,500 1,100
Furniture and fittings, provision for De- 500 350

preciation as at 31 December 2019
Inventory on 31 December 2019 13,000 4,400
Purchases 37,000
Goods sent to branches 18,000 17,200
Sales 39,000 26,000
Provision for doubtful debts 600 200
Branch and head office current ac- 6,800 3,600
counts
Salaries and wages 4,500 3,200
Commission 360
Carriage and travelling expenses 2,200 960
Administrative expenses 2,400
Trade and general expenses 3,200 1,800
Accounts receivable 7,000 2,880
Accounts payable 5,800 400
Bank balances 600 1,350
81,900 81,900 31,900 31,900
You are given the following additional information:
(a) Inventory on 31 December 2024, amounted to: head office TZS 15,240,000 and
st
branch TZS 6,570,000.
(b) Administrative expenses are to be apportioned between head office and the
branch in proportion to sales.
(c) Depreciation is to be provided on furniture and fittings at 10 per cent of cost.

Student’s Book Form Five
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