Page 224 - Accountancy_F5

TZS
January 1 , Chain saws and other tools valued at 4,600,000
st
During the year, chain saws and tools purchase costed 12,400,000

Dec., 31 , Chain saws and other tools were valued at summarised 5,800,000
st
FOR ONLINE READING ONLY
Deprecation on non-current assets can be calculated as follows:
TZS

Valuation at Jan 1 st 4,600,000
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Add: Items bought during the year 12,400,000
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- Total valuation available 17,000,000
Less: Valuation at closing date, Dec., 31 st 5,800,000
Depreciation for the year (to statement of P/L) 11,200,000

The information can be summarised in a T-account as follows:

Dr Chain saws and tools A/C (TZS “000”) Cr

2021 Jan. 1 Inventory b/d 4,600 2021 Dec. 31 Statement 11,200
of P/L
Dec. 31 Cash (bought during the
year) 12,400 Dec. 31 Bal c/d 5,800
17,000 17,000
2022 Jan. 1 Balance b/d 5,800

Exercise 7.3
KB medical laboratory started business on Jan 1 , 2022. The following transactions
st
relate to test tubes and other glass instruments:
1. Jan., 1 , 2022, bought test tubes and glass instruments costing TZS 9,700,000
st
2. Estimated value of test tubes and other glasses instruments at 31 Dec. 2022
st
amounted to TZS 7,800,000
3. Tubes and glass instruments bought during the year ended 31 Dec. 2023 costed
st
TZS 18,600,000
4. Estimated value of test tubes and other glasses instruments at 31 Dec. 2023
st
amounted to TZS 22,800,000
5. Items bought in the year to 31 Dec. 2024 costed TZS 12,300,000
st
6. Estimated value of items in hand at 31 Dec. 2024 was TZS 29,800,000
st
Required: Prepare ledger accounts to record the transactions and transfer of depreciation
to statement of profit or loss for the years ended 2019, 2020 and 2021.

Student’s Book Form Five
211

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