Page 272 - Accountancy_F5

Solution 8.9
In the books of Shambani Winners Enterprises

Dr Tractor account Cr
Date Details TZS Date Details TZS

1 Jan. 2020 Karume Ltd. 28,000,000 31 Dec. 2020 Depreciation 2,800,000
FOR ONLINE READING ONLY
st
st
__________ 31 Dec. 2020 Balance c/d 25,200,000
st
1 Jan. 2021 Balance b/d 28,000,000 28,000,000
st
25,200,000 31 Dec. 2021 Depreciation 2,520,000
st
Karume Ltd. 14,726,250
LANGUAGE EDITING
_________ Profit or loss 7,953,750
25,200,000 25,200,000

Dr Karume Ltd. account Cr

Date Details TZS Date Details TZS

st
1 Jan. 2020 Cash a/c 7,500,000 1 Jan. 2020 Plant & machinery 28,000,000
st
st
31 Dec. 2020 Cash a/c 7,500,000 31 Dec. 2020 H-purchase interest* 1,025,000
st
31 Dec. 2020 LANGUAGE EDITING
14,025,000
Balance c/d
st
29,025,000 29,025,000
31 Dec. 2021 Tractor 14,726,250 1 Jan. 2021 Balance b/d 14,025,000
st
st
_________ 31 Dec. 2021 H-purchase 701,250
st
14,726,250 interest** 14,726,250
*31 December, 2020;
st
Interest = 5% of TZS 20,500,000 which is TZS (28,000,000 -7,500,000)

= TZS 1,025,000
**31 December, 2021;
st
Interest = 5% of TZS 14,025,000 which is TZS (20,500,000 – (7,500,000 + 1,025,000)

= TZS 701,250

Student’s Book Form Five
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