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2. Shambazuri Ltd deals with the purchase and resale of agricultural produce. Its
head office is in Mtwara, but it has a branch in Dar es salaam for selling the
products. All goods purchased by head office are transferred to the branch for
retail selling. The goods are transferred at a cost plus 50% and the same price is
used by the branch to sell the products to customers. All transactions are recorded
in the books of the head office except for the sales ledger which is prepared by
FOR ONLINE READING ONLY
the branch. The following are the transactions at the branch during the year that
ended on 30 June 2021.
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LANGUAGE EDITING TZS
Particular
LANGUAGE EDITING
Inventory on hand, 1 July 2020, at invoice price 52,800,000
st
Debtors on 1 July 2020 47,352,000
st
Inventory on hand, 30 June 2021, at invoice price 47,376,000
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Goods sent from Mtwara during the year at invoice price 297,600,000

Credit sales 252,000,000
Cash sales 28,800,000
Returns to head office at invoice price 19,200,000

Bad debts written off 1,776,000

Cash from debtors 268,800,000
Normal loss at invoice price due to wastage 1,200,000
Cash discount allowed to debtors 5,136,000

Required: Prepare the branch inventory account and branch total debtors account
for the year ended 30 June 2021, as they would appear in the head office
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books, showing clearly any abnormal wastage.

3. The following information shows the transaction of the Lake-Zone branch of a
company whose headquarter is in Arusha for the 1st quarter of the year 2022.

Particulars TZS

Inventory on 1 July 2022
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- Inventory 8,835,000

- Petty cash 108,000
Cash sales during the year 47,370,000

Goods invoiced to branch 49,410,000
Credit sales during the year 21,060,000

Student’s Book Form Five
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