Page 200 - Accountancy_F5

Workings:
Computations of profit on sub-lease:
The above profit on sub-lease is computed as follows:
Royalty receivable rate - TZS 30
Royalty payable rate - TZS 20
Profit - TZS10
FOR ONLINE READING ONLY
Total profit from the year 2021 to 2024:
2021: 6,000 bottles TZS 10 = TZS 60,000
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2022: 7,000 bottles TZS 10 = TZS 70,000
2023: 11,000 bottles TZS 10 = TZS 110,000
LANGUAGE EDITING
2024: 5,000 bottles TZS 10 = TZS 50,000

Dr Tumaini Ltd. account Cr
Date Details TZS Date Details TZS
31 Dec. 2021 Royalty receivable 180,000 31 Dec. 2021 Bank 200,000
st
st
31 Dec. 2021 S/workings allowable 20,000
st
200,000 200,000
31 Dec. 2022 Royalty receivable 210,000 31 Dec. 2022 Bank 200,000
st
st
31 Dec. 2022 S/workings allowable 10,000
st
210,000 Bank 210,000
31 Dec. 2023 Royalty receivable 330,000 31 Dec. 2023 Bank 330,000
st
st
31 Dec. 2024 Royalty receivable 150,000 31 Dec. 2024 200,000
st
st
31 Dec. 2024 S/workings allowable 50,000
st
200,000 200,000
Dr Short workings allowable account Cr
Date Details TZS Date Details TZS
31 Dec. 2021 Balance c/d 20,000 31 Dec. 2021 Tumaini Ltd. 20,000
st
st
31 Dec. 2022 Tumaini Ltd. 10,000
st
31 Dec. 2022 Statement of P/L 10,000 01 Dec. 2022 Balance b/d 20,000
st
st
20,000 20,000
31 Dec. 2024 Statement of P/L 50,000 31 Dec. 2024 Tumaini Ltd. 50,000
st
st

Student’s Book Form Five
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