Page 267 - Accountancy_F5

(b) Using hire purchase interest suspense method:

Dr Irish company Ltd. account Cr

Date Details TZS Date Details TZS
01 Jan. 2018 H-purchase sales 500,000 01 Jan. 2018 Bank: D-payment 200,000
st
st
01 Jan. 2018 H-purchase 31 Dec. 2018 Bank: 1 instal. 118,000
st
st
st
Date FOR ONLINE READING ONLY
interest suspense 36,000 31 Dec. 2018 Balance c/d 218,000
st
536,000 536,000
st
nd
01 Jan. 2019 Balance b/d 218,000 31 Dec. 2019 Bank: 2 instal. 112,000
st
______ 31 Dec. 2019 Balance c/d 106,000
st
218,000 218,000
LANGUAGE EDITING 106,000
rd
st
01 Jan. 2020 Balance b/d 106,000 31 Dec. 2020 Bank: 3 instal.
st
Dr Hire purchase interest suspense account Cr
Date Details TZS Date Details TZS
31 Dec. 2018 Hire purchase interest 18,000 01 Jan. 2018 Irish Co. Ltd. 36,000
st
st
31 Dec. 2018 Balance c/d 18,000 ______
st
36,000 36,000
31 Dec. 2019 Hire purchase interest 12,000 18,000
st
6,000 _______
31 Dec. 2019 Balance c/d 18,000 01 Jan. 2019 Balance b/d 18,000
st
st
31 Dec. 2020 Hire purchase interest 6,000 01 Jan. 2020 Balance b/d 6,000
st
st
Dr Hire purchase interest account Cr
Date Details TZS Date Details TZS
31 Dec. 2018 Profit or loss 18,000 31 Dec. 2018 H-purchase interest suspense 18,000
st
st
31 Dec. 2019 Profit or loss 12,000 31 Dec. 2019 H-purchase interest suspense 12,000
st
st
31 Dec. 2020 Profit or loss 6,000 31 Dec. 2020 H-purchase interest suspense 6,000
st
st
Statement of financial position (extracts) as at 31 December
st
Details TZS TZS

Current assets
2018 Irish Co. Ltd. 218,000
Less: Hire purchase interest suspense (18,000) 200,000
2019 Irish Co. Ltd. 106,000
Less: Hire purchase interest suspense (6,000) 100,000

Student’s Book Form Five
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23/06/2024 17:36
ACCOUNTANCY_DUMMY_23 JUNE.indd 254
ACCOUNTANCY_DUMMY_23 JUNE.indd 254 23/06/2024 17:36